The support and the resistance are identified respectively as the 23.6 percent and the 50 percent projection levels of an upward wave C from $3.60-1/2.
Compared to the first wave labelled A, the wave C looks too short to complete. Five smaller waves make up the wave C, with third wave labelled 3 expected to extend.
A break below $3.68-3/4, which is unlikely, could cause a loss limited to $3.65-3/4. A break above $3.74-1/4 could confirm the continuation of the uptrend towards the range of $3.78-1/2 to $3.82-1/2.
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.