HOLI extended the rebound off the 4.54 low to confirm the rounded bottom formation on break above the key resistance level at 7.50. The subsequent rally reached 9.26 before consolidating. An upside break above 8.70 near the bear trendline (off the 9.26/9.11/8.97 highs) would end the consolidation and initiate the next upleg towards 9.26 (Resistance 1). Clearance above would re-open the 10.50 pre-gap low near the mearsured target of the rounded bottom base (Resistance 2). Further strength there would offer scope for 11.54 (Resistance 3).
However, a break below the key 7.55/7.50 support zone (Support 1) would negate and re-open 6.30 (Support 2). Further weakness there would allow bears to seek 5.20 (Support 3) for a retest.
Trading Indication:
Short-term (or Intraday): Buy at 7.65 or lower;
Target at 10.50 and higher;
Stop Loss at 7.50 (2.0%)
Long-term: Possibly sell higher
However, a break below the key 7.55/7.50 support zone (Support 1) would negate and re-open 6.30 (Support 2). Further weakness there would allow bears to seek 5.20 (Support 3) for a retest.
Trading Indication:
Short-term (or Intraday): Buy at 7.65 or lower;
Target at 10.50 and higher;
Stop Loss at 7.50 (2.0%)
Long-term: Possibly sell higher
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