The market has now reached a good level of prior support/resistance
, which also happens to be the zone between a 38.2 and a 50.0 Fib Retracement level. When using a Fib Extension and a short leg of this downward move we are also at a 161.80 Fib Extension level which can act as a strong level of support. Also, the RSI
is substantially overbought. This would all signify a potential rally at least to our next resistance zone
around $52.00. Let me know your thoughts.