The zone was formed by a descending trend-line resistance and the 61.8 percent Fibonacci projection level of a wave "c" target. A failure to clear this zone has led to a retracement which is seen progressing.

But once the contact surges above $7.26, a further gain to $7.78 could be expected, as the wave "c" would be confirmed extending towards the 100 percent Fibonacci projection level.

Copyright Reuters, 2010