These supports are identified as the 150 percent and the 161.8 percent projection levels of a wave C from $9.25-1/2. This wave is expected to extend to $8.35-1/2.
The big black candlestick on Thursday signals another round of bearish momentum was released. A decent bounce is near. This bounce may occur around $8.35-1/2.
On the hourly chart, the contract is riding on a wave 5, the final wave of a five-wave cycle from $9.15-3/4. A projection analysis and a falling trendline suggest a target at $8.35-3/4, the 238.2 percent level, which almost coincides with $8.35-1/2.
A break above $8.49 could lead to a gain to $8.55.
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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. **