The support and the resistance are identified respectively as the 76.4 percent and the 50 percent Fibonacci projection levels of a downward wave c, the third wave of a three-wave cycle falling from the Oct. 9 high of 17.20 cents.
The drop to 16.19 cents will be followed by a rise towards 16.43 cents, as the correction from 17.20 cents has completed and the rise from the Oct. 27 low of 15.91 cents is regarded as the continuation of the preceding uptrend from the Sept. 23 low of 15.51 cents.
** 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.