These two supports are identified respectively as the 38.2 percent and the 50 percent Fibonacci retracements on the rise from the Sept. 25 low of $4.66-1/4 to the Oct. 24 high of $5.39-1/4. The drop from this high seems to be too linear to sustain.
A fall to $5.10 will signal a break below $5.11-1/4, and the $5.02-3/4 level will be targeted.
** 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.