The resistance is identified as the 161.8 percent projection level of an uptrend from $8.92. This trend is a part of a five-wave cycle from the Dec. 27, 2018 low of $8.80-1/2.
The contract is riding on the fifth wave of the cycle. This wave is expected to be roughly equal to the first wave labeled 1. Based on this assumption, the current wave could travel to $9.35.
On the daily chart, the contract is riding on a wave C, the third wave of a three-wave cycle from the July 16, 2018 low of $8.46. This wave could eventually travel to $9.58, its 123.6 percent projection level, which is pointed by a rising channel as well.
The contract is managing to stabilize around $9.22-1/4. Once it stands firm above this level, it could gain more towards $9.35-1/2.
* 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.