The support was 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. The next support will be at $2,893, the 76.4 percent level.
The wave C is capable of traveling to $2,806, the 100 percent projection level. The moderate consolidation below $2,947 could be brief, to be followed by a resumption of the downtrend towards $2,893.
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.