The support is identified as the 138.2% projection level of a downward wave C from $9.36-1/2. This wave is expected to travel to $8.43. The bounce triggered by the support may end around $8.65, as it looks like a pullback towards a rising trendline.

A break above $8.65 may lead to a gain to $8.74-1/2. On the daily chart, the contract has cleared a support at $8.66, the 61.8% retracement on the uptrend from $8.15-1/2 to $9.48.

Even though this set of retracements have been working as inaccurate supports, they did tell the direction of the move. Most likely, the contract will slide to the next support at $8.43-3/4.

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** 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. **