Previously since around April, the 38.2% Fibonacci retracement level from the highs provided Neckline support of a Head & Shoulders formation. In early June, the Oct2005 uptrend met the 38.2% Fibonacci retracement level and was broken starting the second leg of the selloff wave. Towards the middle of June, this level served as good resistance during a bounce. Friday closed almost exactly at this 38.2% Fibonacci retracement level. This level, the 38.2% Fibonacci retracement level, approx just under 11100, seems to be providing good support & resistance. If it continues to act like it has been, tomorrow should see a bounce from Friday’s close. Should the current uptrend continue from the selloff lows, then between this uptrend and the Oct2005 trendline, a narrowing trading range converges at approx 11320 which may serve as considerable resistance as before during the end of middle March. This narrowing trading range may be confirmed with declining volume.
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