SINGAPORE: LME copper may retest a support at $6,345 per tonne this week, a break below which could cause a loss to $6,225.

The support is provided by the 38.2 percent retracement on the downtrend from $7,348 to $5,725. The metal failed to break the 50 percent level at $6,537 after many attempts. Its repeated failures suggest the formation of a top around this level.

The bounce triggered by $6,345 may be short-lived, probably to end around $6,441, the 123.6 percent projection level of an upward wave C from $5,725. A break above $6,441 could lead to a gain of $6,525.