The support is provided by the 38.2 percent retracement on the uptrend from $8.26-1/4 to $9.22-1/4. The reaction of the contract around this support signals that the correction from $9.22-1/4 could be much shallower than expected.
Either the correction has completed, or it could shape into a flat, which consists of three waves that are roughly equal in length.
Strategically, the target at $9.22-1/4 will be confirmed when the contract breaks an immediate resistance at $9.08. The longer it hovers around $8.99-1/2, the more likely it is to retrace to $8.85-1/2.
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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.