LME copper may fall to $5,774

0

SINGAPORE, March 31- LME copper may break a support at $5,855 per tonne and fall to the next support at $5,774, as its bounce from the March 9 low of $5,652 has completed.

The bounce has been driven by a wave B, the second wave of a three-wave cycle from the Feb. 13 high of $6,204. This wave has adopted a flat pattern, consisting of three smaller waves that are roughly equal in length.

The third wave labeled C may have just started, unfolding towards $5,644, or $5,433, respectively the 61.8 percent and the 100 percent Fibonacci projection levels.

Resistance is at $5,969, the 100 percent Fibonacci projection level of an upward wave (c) which is the third wave of the wave B. A break above this barrier could lead to a gain to $6,039.

* Use EIKON news “Alerts” to get reports sent to your email box automatically.

** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses. ** (Reporting by Wang Tao; Editing by Amrutha Gayathri)