The range is formed by the Nov. 27, 2018 low and the 123.6 percent projection level on a downtrend from 2,896 ringgit. The bounce from this low was triggered by the support at 1,967 ringgit. This bounce was very strong, lasting a few months.
Another bounce may be triggered by the support at 1,967 ringgit or 1,940 ringgit, as signalled by an abandoned baby forming on May 6. At least, the contract may hover above the support range for a few days.
On the hourly chart, a projection analysis reveals a key support at 1,967 ringgit, the 261.8 percent level of a downward wave c from 2,218 ringgit, which works with the support zone on the daily chart to stop the fall. A bounce is due.
A break below 1,967 ringgit may cause a loss to 1,930 ringgit.
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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. **