The resistance is provided by the 61.8% retracement of the downtrend from $19,458 to $3,123. This barrier triggered a deep correction, which has been driven by a wave 4.
This is the fourth wave of a five-wave cycle from the Jan. 29 low of $3,322. It will be totally reversed by the current wave 5, which is capable of traveling to $15,603.
The depth and the three-wave structure of the wave 4 suggest this wave is unlikely to extend towards $9,363. A break below $11,290, however, could signal the extension of this wave.
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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.