Over the next few trading sessions, the metal is expected to zigzag up within a diagonal triangle, the upper trendline of which points to $1,930.

A Fibonacci retracement analysis on the fall from $1,920.30 to $1,761.94 reveals an immediate target at $1,860, the 61.8 percent level.

Retracement from the current level will be shallow, limited to $1,803.

** 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.

Copyright Reuters, 2011