The resistance is provided by the 23.6 percent Fibonacci retracement on the fall from the May 6 high of $7.65 to the Sept. 25 low of $4.66-1/4. The failure has been followed by a drop towards $5.23, a support provided by the lower channel line of a rising channel.
A drop below $5.23 could be extended to $5.09-3/4, the 14.6 percent retracement. Only a surge above the Oct. 30 high of $5.45-1/2 could confirm a break above $5.36-3/4.
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.