The resistance and support are provided respectively by the 76.4 percent and the 61.8 percent Fibonacci projection levels of an upward wave (3) or wave C that started at the May 8, 2014 low of 78.906. Both of these waves are capable of travelling to 91.622, the 100 percent projection level.
The correction from the Oct. 3 high of 86.746 may have completed around 84.392, as the index has only briefly touched this level. Driven by a wave 5, the index could have resumed its uptrend.
Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.