The resistance is provided by the 114.6 percent Fibonacci projection level of a downward wave c that has presumably started at the Aug. 25 high of 50,750 yuan. A rebound triggered by the support at 46,620 yuan, the 138.2 percent level, could be ending around the resistance.
The wave c may soon resume towards 45,910 yuan, its 161.8 percent projection level. A break above 47,320 yuan will open the way towards 47,760 yuan, the 100 percent level.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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