Tokyo Rubber To Test 576.90 Yen/Kg In Four Weeks

Sixth month Tokyo rubber will pierce into a range of 576.90 to 600 yen per kg over the next four weeks, as the current wave "C" is expected to travel further, based on its wave pattern and a Fibonacci projection analysis.
On the monthly chart, the current bull trend is considered as a continuation of a rise that started from the November 2001 low at 62 yen. Labeled as a wave "C", the rise is expected to surge to 576.90 yen- the 161.8 percent Fibonacci projection level, based on the length of the wave "A".
The Gann Fan line spreading from the trough of the wave "B" at 99.80 yen also indicates a possible target around 600 yen.
The wave "C" has obviously adopted a five-wave mode, with the wave "V" extended, traveling longer distance than the wave "I" and wave "III".
The risk for a bearish reversal is very high while the wave "V" is approaching a key resistance at 576.90 yen, which might be the ultimate peak for the five-wave cycle, and a brief piercing above the resistance could also be capped at 600 yen.
(Reuters, February 17, 2011)