The support and the resistance are identified as the 100 percent and the 86.4 percent projection levels of a downward wave C from $9.45.
This support triggered a decent bounce on April 1. It may cause another one. Wave pattern suggests that the bounce may consist of three waves. The third wave labelled c could develop around $8.85-1/2.
A break below $8.85-1/2, however, will open the way towards $8.76-3/4. The break will be confirmed when the contract falls below its March 29 low of $8.83.
A closer look at the wave C on the hourly chart reveals that this wave could be divided into five smaller waves. Such a structure suggests the wave C ended at $8.83. The fall triggered by the resistance at $9.06-1/2 could be a part of the consolidation from $8.83.
Charts are not available in reports received in email box through "Alert". To get charts, use the news code of 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.