Technically Speaking – an update

It’s been quite a bumpy ride since my last entry around about two weeks ago. The market has closed the gap at 1420, and has retraced since then, bouncing at 1370 before attempting to breach the resistance at 1420, once again failing.

Yesterday, the market closed down about 30 points, hovering at the Fibonacci support level of 1370 (market closed at 1376).

What do I expect it to do?

Well, after two peaks within two weeks, I expect the market to continue to be weak, perhaps this week it will play around 1350, the support level of the previous double top I pointed out in my earlier post.

Here, I’d be wary to watch for further weakness, signalling that perhaps investors and traders are still wary of what’s to come in the near future. Breaking the 1350 support level, I really think we’d be headed back towards 1200 levels seen earlier this year.

I hope I’m wrong.

Tread carefully, and happy trading.

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