The resistance is provided by the 76.4 percent Fibonacci projection level of a downward wave C that developed from the June 19 high of $115.71. The break above this barrier turned out to be false.
It is clearer now that the rebound from the Oct. 16 low of $82.60 has been shaped into a rising wedge, which is a typical bearish continuation pattern. The odds could be low against a fall towards the 86.4 percent level at $82.87.
A climb above $86.67 may signal an extension of the rebound towards the upper trendline of the wedge around $88.60.
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.