The support is provided by the 61.8 percent Fibonacci projection level of a wave C, the third wave of a three-wave cycle that started at the Sept. 25 high of $3,399. This wave is capable of travelling to $2,806, its 100 percent projection level. A more realistic target could be $2,893, the 76.4 percent level.
The wave C has a fierce character and may not be interrupted by a strong rebound until it reaches $2,806. Should a rebound be triggered by $2,947, it could be limited to $2,991, the 50 percent 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.