The resistance has been identified as the 76.4 percent Fibonacci projection level of a downward wave C that started at the June 19 high of $115.71 and it may stop oil from rebounding further.
Even though the gap on the daily chart has been caused by a switch from the November contract to the December contact, the various supports/resistances revealed by the Fibonacci projection analysis still have to be closely observed.
A break above $86.67 will trigger a further gain to $89.10.
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.