The metal is riding on a wave 5, the fifth wave of a five-wave cycle from $1,195.90. A projection analysis suggests an ultimate target at $1,266, the 161.8 percent level of an uptrend from $1,210.65. A rising channel suggests a similar target. A more realistic target could be either $1,253 or $1,258.

On the daily chart, the gain on Monday confirms a break above the former resistance at $1,238, the 14.6 percent projection level of a downward wave C from $1,366.07. The next resistance will be at $1,305.

* 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.