The support was provided by the 86.4 percent retracement of uptrend from $4.27 to $4.78. It triggered a bounce which is against expectation. However, the bounce seems to have ended around $4.39. The downtrend may have resumed.
The bounce looks like a moderate pullback towards a resistance at $4.40 on the daily chart, which is the 86.4 percent projection level of a downward wave C from $5.43-1/4.
This wave consists of five smaller waves. The fifth wave 5 is unfolding towards $3.78, which is pointed by a falling trendline.
A break above $4.40 could lead to a gain to $4.51-3/4.
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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 analyses. **