The correction was triggered by a resistance at 2,322 ringgit, the 276.4 percent projection level on an uptrend from 1,979 ringgit.
Three waves make up the correction. The third wave labelled c is capable of travelling into the target zone. On the daily chart, the contract seems to be falling towards 2,246 ringgit, after failing to overcome a barrier at 2,321 ringgit, the 76.4 percent projection level of a downward wave (C) from 2,896 ringgit.
A break above 2,322 ringgit could lead to a gain to 2,351 ringgit (first chart).
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** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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