The resistance is provided by the 23.6 percent retracement on the uptrend from $1,180.34 to $1,346.73. The successive gains from the March 14 low of $1,292.50 suggest an impulsive wave structure of the uptrend from $1,159.96.
The metal could be riding on a wave V, which is expected to travel to $1,346.73 or a higher level. On the hourly chart, a projection analysis reveals a target zone of $1,323-$1,342, formed by the 100 percent and the 161.8 percent levels of an upward wave 3 from $1,292.50.
Support is at $1,297, a break below which could signal either an extension of the correction from the March 13 high of $1,311.08 towards a support at $1,283 or a resumption of the downtrend from $1,346.73 (first chart).
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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.