Tokyo Rubber To Climb To 535.70 Yen/Kg In Four Weeks

Sixth month Tokyo rubber is expected to revisit the Feb. high at 535.7 yen per kg over the next four weeks as its long-term uptrend has resumed.
The contract is now riding an upward wave "V", unfolding towards an ultimate target at 576.90 yen, a 161.8 Fibonacci projection level based on the length of a wave "A" which started at the Nov. 2001 low at 62 yen and ended at the June 2008 high of 356.90 yen.
The wave "IV" apparently stopped around a strong support at 331.90 yen, the 50 percent Fibonacci retracement on the wave "III" rise from 128 yen to 535.70 yen, and so far the current wave "V" has recovered more than 61.8 percent the fall from 535.70 yen to 335, it is quite promising for the rest of the fall to be fully recovered.
A further retracement from the current level is likely to be limited to 426 yen, the 61.8 percent Fibonacci retracement on the rise from 392.70 yen to 481.90 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.
(Reuters, April 13, 2011)