The sharp gain on Tuesday signals a reversal of the downtrend from $9.34-1/2, which consists of three waves. A projection analysis reveals the third wave labelled c ended around $8.88-1/4, its 107 percent projection level. Such a relation confirms the completion of a zigzag. A falling channel suggests a target around $9.07-3/4.
On the daily chart, the break below $8.91 has been confirmed false. The big white candle forming on March 12 is regarded as a bullish reversal pattern. The contract may test $9.03, the 50 percent retracement of the uptrend from $8.53 to $9.53.
A break above $9.03 could lead to a gain to $9.14-3/4, while a break below $8.91 could open the way towards $8.76-1/2.
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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. **