The metal is presumed to be riding on a wave c, the third wave of a three-wave cycle that developed from the Oct. 6 low of $1,183.46. A Fibonacci projection analysis reveals the resistance at $1,233, the 14.6 percent level, which blocks the way towards the 23.6 percent level at $1,239.
Support is at $1,222.2, a break below which will confirm the extension of the preceding wave b towards $1,211, the 61.8 percent Fibonacci retracement on the rise from $1,183.46 to the Oct. 21 high of $1,255.20.
** 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.