The resistance is provided by the 76.4 percent Fibonacci retracement on the fall from the Oct. 14 high of $6,825 to the Oct. 17 low of $6,530, and is strengthened by a similar one that has been established by the upper channel line of a falling channel.

Wave pattern suggests that the rise from $6,530 has been driven by a wave 4, the fourth wave of a five-wave cycle that developed from the Aug. 26 high of $7,108.75. This wave will be totally reversed by a downward wave 5.

A break above $6,755 will lead to a further gain to $6,825.

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.