The support is identified as the 38.2 percent projection level of a downward wave C from $9.27-3/4. This wave is capable of travelling into the range of $8.90-1/4 to $8.97-1/2.
However, it is not very clear if the contract bounces towards $9.13-1/4 first before testing $9.04-1/2. The chance could be small, based on a small double-top forming around $9.26-1/2.
The neckline of the pattern is around $9.15. The bounce from the Jan. 10 low of $9.05-3/4 is classified as a pullback towards the neckline. This pullback could be over.
On the daily chart, the contract broke a support at $9.12-3/4, the 76.4 percent projection level of an upward wave C. It is likely to fall into the range of $8.87-1/2 to $8.98-3/4, which is suggested by a rising channel.
* 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.