The support is identified as the 61.8 percent projection level of a downward wave C from $5.27. The bounce triggered by the support on Oct. 19 has almost been reversed. The reversal signals a continuation of wave C.
Should the contract manage to stand firm above $5.10-3/4, wave C may end around this level. Its completion will be confirmed when the nearest resistance at $5.14 is broken. The break will lead to a gain into the range of $5.17 to $5.20-3/4.
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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.