The analysis is on the downtrend from $10.63-1/4 to $8.26-1/4. It reveals that the contract failed a few times to break a resistance at $9.16-3/4, the 38.2 percent retracement. The failures have caused the current fall towards the support at $8.82, which is indicated by a rising channel as well.

However, this target looks a bit too aggressive. A more realistic target is fixed at $8.91-3/4 on the hourly chart, which is the 61.8 projection level of an upward wave C from $8.57.

Following the break below the support at $8.99-3/4, the contract may slide to $8.91-3/4 or $8.85. A break above $8.99-3/4, now a resistance, may lead to a gain limited to $9.05-1/2.

* 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.