Prices closed over 13 Sept. 3.199 swing high and are set up to challenge the 9 Aug swing high at 3.30.
Technical factors show resistance at 3.27 and 3.34. The Key Resistance is 3.34, the last target protecting the 3.407 high.
There is a Bearish divergence setup on the daily and intra-day charts that in says that the move North could stall before cracking 3.34.
Should this happen it does not mean that the move North is finished, but that a correction could take place soon.
1st support is 3.15, below 3.15 there is support at 3.03 and 2.96.
The 78% Fibo retracement from 3.407 to 2.79 is 3.27, in line with the 3.30 swing high that was made 9 August.
A close over this would call for 3.34, the 89% Fibo retracement and a confluent wave target to be met. This will likely be very strong resistance that will hold initially as it is near the top of the trading range for this year.
Support at 3.15 is the 21% Fibo retracement from 2.79 to 3.241. If the move North is going to continue over the next few days as called for, 3.15 should hold. A close below this calls for a deeper correction to 3.02, the 50% retracement, and possibly $2.96, the 62% retracement.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.
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