The current rebound has temporarily neutralized the signals, and a Fibonacci retracement on the fall from $9,130 to $8,732 reveals a strong resistance zone between $8,884 and $8,931, formed by the 38.2 percent and the 50 percent levels.

Even though it is likely for the rebound to end within the resistance zone, strategically, only a fall below $8,732 could confirm resumption of a downtrend that started from $9,130.

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.

Copyright Reuters, 2011