The contract failed twice to break a resistance at $9.11, the 50 percent retracement on the downtrend from $9.34-1/2 to $8.87-3/4. The two failures suggest the formation of a double-top.
This pattern will be confirmed when the contract break the support at $8.98-3/4. It will then point at a target around $8.87-3/4.
A bounce may be limited to the March 25 low of $9.01-1/2. On the daily chart, the contract has broken a support at $9.03, the 50 percent retracement of the uptrend from $8.53 to $9.53. Chances are it may fall to $8.91 again.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of TECH/C to retrieve the original reports.
** 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. **