The drop from the Nov. 7 high of $2,396 has adopted a five-wave mode, which indicates the drop may consist of at least three parts. So far, only two parts have completed. The third is yet to unfold. It is expected to be as sharp as the drop over the past few days.
The support at $2,189 seems to have temporarily held the fall. A bounce from the current level may be limited to $2,238. A break below $2,189 could confirm the continuation of the downtrend towards $2,140 while a break above $2,238 may lead to a gain to $2,298.
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.