The support is identified as the 50 percent retracement of the downtrend from $1,346.73 to $1,280.70. This retracement analysis also reveals a resistance at $1,322, the 61.8 percent level, around which, a three-wave cycle from $1,280.70 has completed.
The completion was indicated by the equality of the first wave labeled a and the third wave labeled c. The cycle is expected to be reversed more. The current correction seems to be too shallow to complete.
A break above $1,323, the 100 percent projection level of the wave c, could lead to a gain to $1,331-$1,338 range.
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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.