Got a handsome bounce from the first support level discussed 4620(C1), after that 78.6% was the obvious resistance for the day (After any ABC correction, the immediate resistance/support would be 78.6% RT of the entire ABC move to qualify for the either side break out situation, either to continue it's up/down move or to begin a trend reversal). So we took resistance at 4680 (78.6% of 4696-4623), and successfully tested the BC=1.618*AB zone=4590(C2). That was picture perfect. And next move was the same 78.6% again of the entire down move (78.6RT of 4696-4591=4673, high made4676) and couldn't sustain again. Now take a look to next move...
Main support for the day lies @ 4615/20-4574/78-4505/10. Now the shorter degree formation,
So as long we are holding 4623/15 zone we have all possibilities to take out the previous high of 4696. Now projecting upward and downward breakout in both cases.
Breaking 4680/85 on the upside, will target 4710 and 4730/37, which is a must watch area. Will wish to book some longs and experiments with some PEs. On the downside, breaking 4620 will target 4601-4574 ( got on the 2nd chart also)-4555.
Support: 4625-4615 (very crucial zone), below that 4605- 4575 -4555 possible.
resistances: 4669/73-4710 and full and final 4730/37. A must watch.
Happy trading.
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