A Fibonacci retracement on the preceding fall from 3,083 ringgit to 2,993 ringgit reveals a resistance at 3,049 ringgit, the 61.8 percent level, which could be the limit for a wave "a" rebound.

A downward wave "c" will start around 3,049 ringgit, and drive the contract to 2,993 ringgit, so as to complete an "a-b-c" cycle. Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

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Copyright Reuters, 2011