The current wave decline is expected to drive the price to the 38.2 percent Fibonacci retrenchment on the rise from $1,522.35 to $1,608.70, or deeper, to the 50 percent level.

And the correction could have adopted an "a-b-c" corrective wave mode, with the rebound during the previous trading session labelled as a wave "b", to be followed by a downward wave "c".

A rise above $1,608.70 will violate the bearish outlook.

Copyright Reuters, 2011