The support and the resistance are identified as the 123.6 percent and the 100 percent Fibonacci projection levels of a downward wave C that developed from the Aug. 8 high of $1,322.60.
The bullish divergence on the hourly RSI suggests a dissipation of the bearish momentum.
Even though the wave C may eventually extend below $1,243, it seems to have paused around this level.
A break below $1,243 will open the way towards a range of $1,218-$1,233, formed by the 161.8 percent and the 138.2 percent projection levels.
The views expressed are his own.
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