Levels short term #2

Continuing from previous post... It is safe to assume the area of 49-50 has strong support due to multiple down days bouncing back off those price levels. We finally broke through resistance at 53-54 levels but risk a gap-fill. Any dips below 53 should be momentary and needs to close above to continue upwards.

Using fib-extensions from Mar 6 and Mar 28, I've determined the next price level we will need to break is 58-59 before moving up to 63-64. The fib-extension beginning Mar 6 did predict the 1.618 around 58 so there should be a pull back and consolidation for the next week (with no news based influence). Maybe this will be the "gap-fill"...

Comment:

It's been trading within the resistance zone and was rejected several times. Today closed with a bearish doji star (daily) and depending on market conditions tomorrow, may result in testing 54 support. If we consider today's close as it's first above 59, then it will continue to trade sideways and hopefully have a solid close above before moving upwards to 63.

Happy trading.

Comment:

Using fib retracement to the lows of March 6, the lows of today hit the .618 mark before bouncing up. Hopefully the close today will be within the support region - if it closes above 54 we may have a run next week to regain the 59-60 position. Otherwise a weak close below 54 may indicate sideways trading in this area. Below 53 closing might indicate a reversal and test 49.