The support was provided by the 76.4 percent Fibonacci projection level of a downward wave c that started at the Oct. 20 high of 16.89 cents. This wave seems to be only partially completed, as it is capable of travelling to 15.97 cents, the 100 percent projection level. The lower channel line of a falling channel points a target similar to 16.19 cents as well.
A rise to 16.50 cents may signal an escape from the channel and a break above the resistance at 16.43 cents, the 50 percent level. The 23.6 percent level at 16.67 cents will be targeted then.
** 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.