This entry was posted on Thursday, June 9th, 2011 at 6:53 pm and is filed under Rubber News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
SINGAPORE, June 9 (Reuters) – TOCOM sixth month rubber
is expected to revisit its February high of 535.70 yen
per kg over the next three months.
The deep drop in March to a low at 335 yen has not violated
a long-term bull trend that started from the 2008 low of 99.80
yen, as the fall is considered as the first leg of a wave “IV”
correction.
The second leg of the fall from the April high at 481.90 yen
to the May low at 353.20 yen completed an “a-b-c” corrective
cycle which makes up the wave “IV”.
An upward wave “V” could have taken over, unfolding towards
the presumed wave “III” peak at 535.70 yen.
A fall below a support at 353.20 yen would be extended to
331.90 yen, the 50 percent Fibonacci retracement on the wave
“III” rise from 128 yen to 535.70 yen.
** 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. **
Source: Reuters