The contract rebounded sharply after hitting a low at $3.55-1/4 on Tuesday. This low is very close to the March 29 low of $3.56. It seems that there is a strong support around $3.56.
The bullish divergence on the hourly RSI suggests a further gain. A retracement analysis reveals a possible target at $3.64-3/4, the 38.2 percent level.
On the daily chart, a projection analysis marks a strong support at $3.56-1/4, the 100 percent projection level of a downward wave (c) from $3.97-3/4. This support is responsible for the strong bounces on April 1 and April 9. Chances are a double-bottom could form around $3.56-1/4.
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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 analyse.