These supports are identified as the 61.8 percent and the 76.4 percent retracements of the uptrend from $8.80-1/2 to $9.41.
The contract seems to be riding on a wave C, the third wave of a three-wave cycle from $9.41. It is capable of traveling to the bottom of the previous wave A at $8.80-1/2.
The pattern from the Jan. 18 high of $9.20-1/4 looks like a head-and-shoulders, which will be confirmed when the contract breaks $9.03-1/2. It indicates a target around $8.80-1/2.
A break above $9.10-3/4 may lead to a gain to $9.17-3/4. On the daily chart, the contract has briefly moved into a lower channel which suggests a more bearish target around $8.54-3/4, the 7 percent retracement of the downtrend from $10.54-1/2 to $8.39-3/4.
The target will only be confirmed when the contract falls below the Feb. 15 low of $9.01-1/4.
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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.