NEW YORK ( TheStreet) -- During the third quarter, copper prices are expected to take their cues from China, and the country may provide the next directional shift in demand.In the medium to long term, copper is expected to touch previous highs, as demand from China and developing Asia remains robust. However, price direction remains extremely volatile, with a downward bias in the short term, marked by new lows for the year. Technically, resistance lies at $7,100. If that level is broken the next resistance level will be at $8,400. Support for the metal lies at $6,100 and $5,600 during the third quarter. Fundamentally, demand from China depends upon factors such as announcements concerning the revaluation of the yuan, policy measures to soften the property market and perhaps even another wave of speculative stock buying. Moreover, the reopening of the arbitrage window, wherein traders can buy the metal on the London Metal Exchange when it's oversold and sell it on the Shanghai Futures Exchange and pocket the difference, may act as a momentary trigger.