We have punched through the RESISTANCE LINE of the DESCENDING TRIANGLE, a very BULLISH SHORT TERM development.
Is a follow through which would be real test on the horizon ?
We have the 50 & 200 day SMAs as well as the RESISTANCE LINE of the down trending channel on sight as of this writing. All these three clustering with 38% Fib. retracement makes the zone of 5570-5600 an important resistance zone. If successful on this front, next level would be 5690 zone which would confirm the DOUBLE BOTTOM. At this stage we focus on the first hurdle of 5570-5600 which a renewed selling may be forthcoming.
If we are successful at this level (5570-5691) we can conclude that the correction on hand may be over. Not a reversal as yet. That ( reversal) would come, when we have a confirmation of the anticipated DOUBLE BOTTOM ( close @ 5691 or above ).
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