The resistance is provided by the 23.6 percent retracement of the uptrend from $8.39-3/4 to $9.41. Working together with this resistance is another one at $9.20-1/4, the 61.8 percent projection level of an upward wave C from $8.91-1/4.
The longer the contract hovers below the zone of $9.17 to $9.20-1/4, the more likely it will fall. A break below an immediate support at $9.09-1/4 could confirm a target at $9.02-1/4, while a break above $9.20-1/4 could confirm the extension of the wave C towards $9.38-1/2.
On the daily chart, there are two alternate wave counts on the rise from the Dec. 27, 2018 low of $8.80-1/2. Either a wave e or wave C is unfolding. The former may end around $9.47, while the latter is capable of traveling into the range of $9.72-1/4 to $10.03-3/4.
These two potential targets will only be confirmed when the contract breaks $9.21-3/4, the 38.2 percent retracement of the downtrend from $10.54-1/2 to $8.39-3/4.
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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.