The support is provided by the 61.8 percent Fibonacci retracement on the rise from the July 15 low of $1.6310 to the Oct. 13 high of $2.2545. A five-wave cycle from $2.2545 is bottoming, as its five component waves have unfolded one by one.
Resistance is at $1.9430, the 50 percent retracement, a break above which will confirm the completion of the cycle and an immediate target will then be $2.0165, the 38.2 percent retracement.
** 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.