Triggered by the completion of a five-wave cycle, the rebound is against the fall from the May 1 high of $106.43 to $77.28.
A Fibonacci retracement analysis on the fall reveals a resistance at $84.16, the 23.6 percent level.
Strengthening the resistance is another one at $85.70, the presumed wave 4 peak. Together, the two resistances will end the sharp rebound.
It could be too early for the bulls to cheer the rebound, as the preceding long-term downtrend is still steady.
** 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.