Seven Days Ahead - Professional trading guides and recommendations in the world's markets

WEEKLY CHART - CONTINUATION:

Earlier this year the recovery paused ahead of the 38.2% recovery level, but setbacks proved relatively modest.

It has been eroded now, and the recent price swings may be viewed as what textbooks refer to as a ‘running correction' - a sign of strength.

DAILY CHART - DEC-09:

The slip back from 77.71 Aug high found effective support from our channel base projection (there was dual Fibo support here too).

Subsequent strength proved more than a short-lived affair and break above 77.71 implies strength.

S/term note resistance from the rising resistance line and slightly higher channel top projection around 81.00 - a pullback would not surprise from here, but the assumption is that it will be temporary and not too deep.

The 72.92 17-Sep high offers support, and also note the lower 61.8% pullback level around 70.75 currently - buyers on dips will ideally favour towards this latter level, though no guarantee this will be seen.

In the s/term, a break through the channel top resistance would first target towards the 85.67 area, 1.618 swing projection off prior 77.71-64.83 pullback.