Looks as if the long down channel has broken.However, until a new higher low has been formed, we can't assume that we are in an uptrend.This should be somewhere of the lower "anticipated" uptrend line , above 8350.We also have the option of developing a reverse bull triangle,target around 9000. Wouldn't that be a nice start to the new year! Whatever, we have weak horizontal support/resistance across 8550 and I guess that's the magic number for this week.
So now we have a confirmed uptrend, having established at leaaast one significant higher low and at least one higher high.The charts show a bul triangle formation and I estimate the target at 9000, but there should be a drop to support around 8700 ( rising support line) first. I would like to see the lower suport line meet the 100MA where we should bounce off and breakout from 8800. If the breakout fails, then support is at 8450.
Following the RSI chart, we can expect a drop to 20-25 before continuing the move up, if that is where we are headed. Realistically, 8950 can be seen as the target resistance. A move above that will take some doing.
Following the RSI chart, we can expect a drop to 20-25 before continuing the move up, if that is where we are headed. Realistically, 8950 can be seen as the target resistance. A move above that will take some doing.
