The bounce from Oct. 12 low of $79.23 may consist of three waves. So far, only two waves have completed. The third wave labelled c is expected to travel into the range of $82.10-$82.99, formed by the 38.2 percent and the 50 percent retracements of the downtrend from $86.74 to $79.23.

The bounce is regarded as a pullback towards a rising trendline, it may end below $82.99. Upon its completion, the bounce will be completely reversed by a downward wave (c), the third wave of a three-wave cycle from $86.74.

A projection analysis on the daily chart reveals a key  resistance at $83, the 123.6 percent projection level of an upward wave (C) from $44.35. It coincides with the resistance at $82.99. They will form a strong resistance zone to end the bounce.

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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.