The support is provided by the 150 percent projection level of an upward wave C from $1,195.90. This wave could have peaked at the Feb. 20 high of $1,346.73. It is expected to be further reversed.
The drop from this high looks incomplete. It may at least extend to $1,311, as pointed by a rising trendline. Even though it is clear that the current bounce would be weak, to end soon, it is not very certain how far this bounce could extend. Probably, it will be limited to $1,343.
On the daily chart, the bearish divergence on the RSI suggests a further fall. Given that the fall developed around the upper trendline of a huge wedge, which lasted for a few years, this fall could be the beginning of a long-term bear trend.
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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.