These two supports are identified respectively as the 76.4 percent and the 100 percent Fibonacci projection levels of a downward wave c, the third wave of a presumed three-wave cycle from the Nov. 24 high of $43.46. This wave is capable of extending to $38.38.
Resistance is at $39.76, the 61.8 percent level, a break above which could lead to a gain to the 50 percent level at $40.19.
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.