On the other hand, if the DFMGI breaks below the 88.6 per cent retracement
level with momentum, it heads towards the 2016 low and has a good chance of breaking below it eventually.
Note that the market is coming off 61.8% retracement
and completed 2 sets of ABC corrections 6 perhaps a double 3 in Elliott wave terminology.
Last week's price behaviour has created a bullish weekly candle pattern and it occurred around support of the 61.8 per cent Fibonacci retracement
price level of 6.02.
Support at 3.15 is the 21% Fibo retracement
from 2.79 to 3.241.
Certainly, in the short-term a retracement
higher may be seen, in which case watch for resistance around 3,489, followed by the 3,511 price area.
Only a daily close below this level would suggest top is possibly formed and risk minor correction to 1.2915 (38.2% Fibo retracement
of 1.2503-1.3169) but the Tenkan-Sen now at 1.2835 and previous support at 1.2755 should hold, and bring on another rise later to the upside targets.
of the Nov-Dec rally at 97.157 provides support.
The 50 per cent retracement
level (3,505.08) of the prior downtrend off the October peak was also reached.
is a very popular tool among technical traders and is based on the key numbers identified by mathematician Leonardo Fibonacci in the thirteenth century.
That's a roughly 10-point bounce in two sessions from Nov-Dec lows and puts October 28.84 highs within reach, while 20.0 remains the 50% retracement