When I wrote 'I have placed an 'X' on the Daily Chart above as a precautionary measure just in case the market rallies as that could be a potential target for the possible double bottom on the upside - it is at about 3.3425 area & well above the key 50% Fib at 3.2728.', I did not expect the target to be achieved in one day. Nor did I expect the market to spear right through the centre of the 'X'...it was pure serendipity I assure you. Anyway, now that we have that out of the way, looking forward, I am concerned by the somewhat lack of ambition of the market to move away from the current 50% Fib at 3.2474...it is seemingly key at the moment. Two weeks ago after the huge rise and then partial pullback the market rested on this 50% Fib.
Last week it broke down through it but has still not managed to have consecutive closes underneath as the first real band of support 3.2093 - 3.2233 kicked in. This support in addition to a slightly longer term 50% Fib (3.2233) has also the Long MA (currently 3.2121). The lagging indicators have three out of four MAs pointing up...but we are close to the Long MA and I'm cautious about those...it may be potent support. Bearing all this in mind, I'm minded to leave the bullet point above in Neutral and wait and see how things work out with the 50% Fibs and Long MA.
Support is currently at 3.2233, 3.2174, 3.2121 (dynamic), 3.2093, 3.1929 (dynamic), 3.1795, 3.1401 and 3.0861.
Resistance is currently at 3.2474, 3.3671, 3.2728, 3.2855, 3.2985, 3.3282 and 3.3450.
Disclaimer: ADM Investor Services International Limited is authorised and regulated by The Financial Conduct Authority. Member of The London Stock Exchange. Registered office: 4th Floor Millennium Bridge House, 2 Lambeth Hill, London EC4V 3TT. Registered in England No. 2547805 a subsidiary of Archer Daniels Midland Company. Risk Warning: Investments in Equities, CFDs, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value, investors should therefore be aware that they may not realise the initial amount invested, and indeed may incur additional liabilities.
These Investments may entail above average financial risk of loss, and investors should therefore carefully consider whether their financial circumstances and investment experience permit them to invest and, if necessary, seek the advice of an independent Financial Advisor.