The rebound from the Oct. 6 low of $1,183.46 has adopted a corrective wave mode, currently divided into three waves, with the first wave labelled a having peaked at the Oct. 10 high of $1,233.20 and the second wave labelled b having bottomed at the Oct. 15 low of $1,221.67.
The third wave c has failed to extend above resistance at $1,248, its 61.8 percent Fibonacci projection level. A consolidation has been triggered, taking the shape of a triangle.
This pattern could be bearish, indicating a target at $1,229, the 23.6 percent level.
** 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.