During last days we saw a strong comeback of bulls. There were few reasons for that but in my opinion the summit at Europe and decisions from that meeting were the most important. Is this positive change is going to stay?
Let’s have a look at the current situation. S&P500 has closed on Friday above recent high.
It is possible that in the next week we will see a continuation of that move. In that case we will be looking at Fibonacci extension lines as a possible resistance levels. 161.8% extension is between two important resistance lines: resistance from end of April and from March which is a little bit higher. If bulls want to move higher, they have to break above this resistance area – so above 1420 points.
Strong selloff on WTI Oil stopped at 89$. Since then bulls are trying to move oil price higher. When you check weekly time frame, you can see that around 90$ there is a 61.8% retracement line. It is possible that we will see a stronger move up if the positive sentiment among investors is going to stay.