The range is formed by the 38.2 percent and the 50 percent projection levels of an upward wave (c) from $8.64. This wave may have ended around $8.98-3/4, if it is weak, or extend to $9.20-1/4 range, if it is strong enough.
A break below $8.85-1/4 may cause a loss to $8.77-1/4, while a break above $8.92 could signal the extension of the wave (c) towards $9.20-1/4. A realistic target will be $8.98-3/4, or $9.06-3/4.
Signals on the daily chart suggests an upside bias, as the contract has managed to hover above a former resistance at $8.82, the 23.6 percent retracement on the downtrend from $10.63-1/4 to $8.26-1/4.
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.