The resistance is provided by the 23.6 percent Fibonacci retracement on the fall from the July 4 high of 51,580 yuan to the Oct. 17 low of 46,270 yuan. This barrier caused a drop towards the 14.6 percent level at 47,050 yuan on Oct. 27 and may trigger another one.
A rise to 47,640 yuan may signal a break above the 47,520 yuan and the 38.2 percent retracement at 48,300 yuan will be targeted.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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