XJO rebounds after a month of falls

The past week saw buyers return to the market, and lift the index from a retracement low of 4886 back above the significant 5000 level to a close for the week at 5013.5.

The gain for the week was a solid 122 points. Although reassuring for long investors, the retracement of the past month was just 33.85% of the previous impulsive move, the lower end of the usual range between one-third and two-thirds. This perhaps suggests that there might be another leg to the decline.

It would confirm the bullish market sentiment if the 5000 support level holds, and there are further gains during the week.

The next target is resistance at 5150, but it might well take another month to realize.

http://tradingforblondes.com.au/category/blonde-weekly-updates/

For Trading for Blondes April 12 Market Report:

Categories: Chart Analyses, Technical Analysis

Tags: Fibonacci retracement, Support and resistance