The contract is riding on a wave C from $4.50-1/2, which is the third wave of a presumed three-wave cycle from the May 13 low of $4.42-1/4.
This wave is expected to at least travel into a range of $4.97-1/2 to $5.26-3/4. It may extend into a higher range of $5.26-3/4 to $5.74 as well.
The structure of this wave suggests the development of a double-zigzag, the fifth wave of which labelled a is unfolding towards $4.97-1/2, as pointed by a rising trendline.
Support is at $4.79-1/2, a break below which may cause a drop to $4.68-1/2.
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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. **