The resistance is identified as the 76.4 percent projection level of an uptrend from $4.40-1/4. This trend is highly likely to extend to $4.70-1/4, after briefly developing above $4.63.
The shallow correction triggered by the resistance is expected to end around $4.55-1/4, which is pointed by the lower trendline of a rising wedge.
On the daily chart, the contract has broken a resistance at $4.56-1/2, the 14.6 percent retracement of the downtrend from $6.30-1/4 to $4.27. It is pulling back towards this former resistance, now a support.
Upon the completion of the pullback around $4.56-1/2, the bounce may resume towards $4.74-3/4.
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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. **