Support is provided by the 38.2 percent Fibonacci retracement on the uptrend from the Oct. 6 low of $1,183.46 to the Oct. 21 high of $1,255.20. It has triggered a weak rebound which seems to have ended around the 30 percent level at $1,234.
Strategically, a drop to $1,226 will confirm a break below support and the next support at $1,219, the 50 percent level, will be targeted.
A break above $1,234 could lead to a further gain to $1,238, the 23.6 percent level.
** 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.