Driven by a wave (4), this rebound at its full capacity could extend to $84.60, the 38.2 percent Fibonacci retracement on the fall from the Oct. 1 high of $92.96 to $79.44.
However, oil has obviously failed to break a resistance at $82.63, the 23.6 percent level. The failure itself is not good enough to serve as a convincing signal that the rebound is over. A drop below $81.41, the 14.6 percent level, may do.
A break above $82.63 will open the way towards $84.60.
** 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.