The support is provided by the 100 percent Fibonacci projection level of a downward wave c, the third wave of a presumed three-wave cycle from the Nov. 25 high of $46.50.
The next support will be at $40.16, the 114.6 percent level, a break below which could cause a loss to the 123.6 percent level at $39.79.
A break above $40.75, now a resistance, could lead to a gain limited to $41.30, the 86.4 percent level.
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.