Fibonacci & Prior Support Lining Up
We observed the markets follow the Fibonacci retracements of the October range fairly closely over the last couple of weeks and now that the market is bouncing higher it is a good idea to look at retracement levels of from the October highs down to the recent lows. Of course, prior levels of support should be watched as potential resistance areas too when a market is bouncing, some of those levels are outlined below. We have been using the 65 minute charts recently but today switched to the 30 minute timeframe as the longer time reference isn’t as important to frame the bounce potential. The markets are bouncing, but confidence in this rally is low, for me at least. Back below Monday’s lows would be troublesome.
click the chart to enlarge