The rebound was triggered by support at $1,226, the 150 percent Fibonacci projection level of a downward wave C that developed from the Aug. 8 high of $1,322.60.
A part of this wave has been unfolding in a falling channel. The current rebound could be towards the upper channel line, which is about $1,249, the 114.6 percent projection level.
A break below $1,226 will confirm the extension of wave C towards $1,218, the 161.8 percent projection level.
The views expressed are his own.
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