The contract is riding on a wave C which consists of a lot of smaller waves. The fifth small wave labelled 5 is unfolding towards $0.9920, which is pointed by a falling trendline.
It is strange to note that the wave 4 is as sharp as the wave 2. This is a bit confusing as the wave 4 is supposed to be sideways.
A break above $1.0920 may signal the extension of the wave 4 towards the zone of $1.0190-$1.0255.
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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. **