Shanghai copper faces a resistance at CNY 53,010 per tonne and may retrace to CNY 51,780.

The resistance is provided by the 138.2% Fibonacci projection level of an upward wave C, which started at CNY 48,540 an hourly chart low touched on July 31.

This wave is unfolding its final component wave the wave 5. Experience shows that it is generally difficult to predict the top of the wave 5. However, the much longer wave 3 does indicate small chance of the wave 5 to extend beyond the August 16th 2013 high of CNY 53,240.

The bearish divergence on the hourly RSI also suggests an exhaustion of the wave C and a bearish reversal around CNY 53,010.