The range is formed by the 38.2 percent and the 23.6 percent retracements of the uptrend from $8.39-3/4 to $9.41. A break above $9.17 could lead to a gain into the zone of $9.26-$9.41.
However, two trendlines are converging towards a point. The lower line suggests a fall towards $8.90-1/4, which will be confirmed as a target when the contract breaks $9.02-1/4.
Signals on the daily chart are also mixed. A projection analysis on the target of an upward wave C reveals a similar neutral range of $8.98-3/4 to $9.22-1/4, formed by the 61.8 percent and the 86.4 percent levels. Chances are the contract may consolidate further in the range for one or two days.
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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.