The range is formed by the 50 percent and the 38.2 percent projection levels of a presumed wave C from $3.81-3/4. A break below $3.73-1/4 could cause a loss to the zone of $3.68-3/4 to $3.71-1/4, while a break above $3.75-1/4 could lead to a gain to $3.77-3/4.
It is hard to categorize the sharp fall on Thursday. The fall could be the final retreat of bulls before launching a major attack. It could be also a resumption of the wave C towards $3.71-1/4.
A projection analysis on the daily chart reveals a bigger neutral range of $3.72-1/4 to $3.80-3/4, formed by 14.6 percent and 38.2 percent projection levels of an upward wave C. The best strategy could be to wait for a break.
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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. **