Last week I wrote: "As expected, more or less some 15 points up move the past week. A longer term Fibonacci projection now reaches exactly the 261.8% target. With the convergent move between the index and the stochastic RSI, we must expect in the first place a (smaller) correction related to the last wave up. This reaction will be in the order of 60 index points. The index is now at the upper side of the pitchfork channel and the stochastic RSI is topping. The index is also far away from the averages. Possibly the reaction starts the coming week. Please read my comments on the weekly chart and monthly chart for more comments and the longer term view."
Closing the week higher with a gap on Wednesday but, starting a reaction on Thursday after reaching a 161.8% Fibonacci target and, the resistance of the R1 pivot of the current month. Price is still at the upper side of the volatility channel and the BBS band. The indicators turned down. Price is far away from the averages. I expect the gap to be closed the coming week and possibly a further reaction down towards the PP pivot of the month. Please read my comments on the weekly chart and monthly chart for more comments regarding the longer term view.
Sylvain Vervoort http://stocata.org/