This is the third wave of a three-wave cycle that started at the Sept. 25 high of $3,399. It is progressing towards the 61.8 percent Fibonacci projection level at $2,947.
The support at $3,034, the 38.2 percent level, may temporarily hold this wave, but a drop to $3,020 will confirm both a break and the target at $2,947.
A rebound from the current level may be limited to $3,088, the 23.6 percent projection level.
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.