The range is formed by the 61.8 percent projection level of the wave (3) and the 76.4 percent retracement of the downtrend from the Jan. 3, 2017 high of 103.82 to the Feb. 16, 2018 low of 88.253.

The wave (3) has a fierce character. It could easily travel to 99.21. Many smaller waves make up this wave. The first wave labelled i failed to travel above a resistance at 97.873. The third wave labelled iii failed in its first attempt, as well.

However, the index is going to undergo its strongest rally. This time, the resistance at 97.873 may not hold. A break above this level could open the way towards 100.146. A realistic target could be 99.21.

A break below 96.036 may cause a loss to 94.20.

* 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. **