Fib extension on 12.10. and 13.10 showed us possible rally price levels. We reached 1.618 level, which is very good!
Of course bull raised up and now we are fighting our path up between 0.236 and 0.382 Fib retracement of last rally. It's worth to mention that this 0.236 level is also 50% Fib retracement level of last decline from 79.60 to 27.45 in first half of September.
We have three options and I can't decide which one is more probable, so we'll have to watch this market:
a) break above 55.5 with good volume and nice close above it would lead us towards our targets (T1, T2 and T3), on each target some part of trade should be cashed out. Stop loss for this one should be below 51.
b) we'll be trading in channel between 55.5 and 51.5. Not good for trading IMO.
c) pullback through 0.382 level (Vintage support 2) would lead us to Support 1 and maybe lower. We'd have to watch the market closely.
Of course bull raised up and now we are fighting our path up between 0.236 and 0.382 Fib retracement of last rally. It's worth to mention that this 0.236 level is also 50% Fib retracement level of last decline from 79.60 to 27.45 in first half of September.
We have three options and I can't decide which one is more probable, so we'll have to watch this market:
a) break above 55.5 with good volume and nice close above it would lead us towards our targets (T1, T2 and T3), on each target some part of trade should be cashed out. Stop loss for this one should be below 51.
b) we'll be trading in channel between 55.5 and 51.5. Not good for trading IMO.
c) pullback through 0.382 level (Vintage support 2) would lead us to Support 1 and maybe lower. We'd have to watch the market closely.
