The zone has been formed by the 38.2 percent Fibonacci retracement on the fall from 21.77 cents to 18.66 cents and the 100 percent Fibonacci projection level of an upward wave c.

The next zone will be between the 50 percent retracement and the 138.2 percent projection level.

Trading volume on Monday has more than doubled compared with that on Nov. 16, indicating a further gain on Tuesday as well.

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.