A five-wave cycle from the Oct. 13 high of $2.2545 is believed to be over at the Oct. 27 low of $1.88. However, the weak rebound from this low and the following drop signal an extension of the cycle.
It is not very clear yet if the current fall is driven by a wave (3) or a wave c, but both of them are fierce enough to travel to $1.6310, the July 15 low.
A Fibonacci retracement analysis on the rise from $1.6310 to $2.2545 reveals a support at $1.8690, the 61.8 percent level, a break below which will lead to a further loss to $1.7780, the 76.4 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.