A wave "4" retracement could have completed after it touched a low at $6.08, which falls within a strong support zone between $5.78 and $6.38, the 38.2 percent and 23.6 percent Fibonacci retracements on the rise from $3.24-1/2 to $7.35.
The contract could have started an upward wave (5), advancing towards $8.00, as pointed by an upper trendline which passed through the peaks of the wave (1) and the wave (3).
A fall below a pivotal support at $6.70 will signal the wave (4) correction has extended towards the $6.08 level and it may take a longer time before the wave (5) develops. Nevertheless, the bullish target at $8.00 should remain intact.
** 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.