The correction from the Dec. 3 high of $9.23-3/4 consists of three waves. So far, only two have unfolded. The third wave labeled c is traveling towards the target range which is formed by the 61.8 percent and the 76.4 percent projection levels of a bigger wave C from $8.57.

On the daily chart, a retracement analysis on the downtrend from $10.63-1/4 to $8.26-1/4 reveals a strong resistance at $9.16-3/4, which stopped the wave C. The contract is likely to retrace towards the support at $8.82.

A break above $9.17 (first chart), may lead to a gain to $9.26-1/2.

* 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.