A small five-wave cycle has completed on the fall from the June 15 high at 3,285 ringgit to a low at 3,031 ringgit, and the bullish divergence on the hourly RSI indicator also suggests the contract has been oversold.

However, once a pivotal support at 3,031 ringgit is broken below, the current medium-term downtrend would be deemed to have resumed, with a bearish target established at 2,950 ringgit.

** 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.                

Copyright Reuters, 2011