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A re-labelling of the wave pattern indicates the retracement could have adopted an impulsive five-wave mode, with the current wave "4" likely to edge up a bit more to $7.70 and a following downward wave "5" to drive the price down to $7.35.
A rise to $7.75 will reverse the short-term downtrend that has been established during the past three trading sessions.
Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.