The analysis is on the uptrend from $3.67-1/4 to $3.87-3/4. It reveals a support at $3.72, the 76.4 percent level, which triggered the bounce from the Dec. 26, 2018 low of $3.72-1/2. The bounce could have ended around a resistance at $3.84-3/4., as indicated by the depth of the drop from the Jan. 8 high of $3.84-1/2.
The bounce may have been driven by a wave (b), the second wave of a three-wave cycle from $3.87-3/4. This wave is expected to be totally reversed by the current wave (c), which may eventually travel to $3.67-1/4. A more realistic target could be $3.75, as pointed by the rising trendline.
On the daily chart, two trendlines are converging to a point. A sharp move is due.
* 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.