The contract is riding on a wave (c), the third wave of a bigger wave C from $3.67-1/4. These waves are a part of a bigger uptrend from $3.54-3/4.
The first part of the wave C, which is labeled (a), consists of five smaller waves. This five-wave structure is a powerful indication on the following rise towards $3.93. After the deep correction from the Jan. 8 high of $3.84-1/2, the wave C seems to have resumed.
On the daily chart, two trendlines are converging to a point. The coming rise is expected to be very sharp.
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** 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.