Let's go to the charts. Again, using the same fib fan and fib retracement tools as we did yesterday, you will see that the action was within the limits of the lower and upper fan blades. The only exception was on the open, where the lower blade was deeply penetrated to the downside. When this happens, it is not unusual to see a counter reaction to the top of the upper fan blade. Hence we saw a nice pull up to the 998-999 level. Also note that the upper fan blade intersects with the 68% retracement level on the fib grid which runs from the intraday high of the 7th to the intraday low of the 17th. Further resistance was provided with the long flat action on the 14th in the 996-998 range - serving as a nice ceiling on this move.
Remember, you can click on the image for a bigger view:
Todays action up close:
We remain in a downtrend, but we must watch for a break-out tomorrow above 1000 and be especially concerned about a break-out above 1002.
Happy trading.
1 comment:
Fabulous analisys.
Facts and figures lead to opinion, not the other way around as I so often come across.
Post the gap results!!
Have a good trading week.
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