The resistance is provided by the 38.2 percent Fibonacci retracement on the fall from the Aug. 25 high of 50,750 yuan to the Oct. 17 low of 46,270 yuan. A correction has been triggered, towards the 23.6 percent retracement at 47,330 yuan.
A break above 47,980 yuan could lead to a further gain to 48,510 yuan, the 50 percent retracement.
** 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.