In round numbers, IF lcy retraces from here, then 16c is 38%...

In round numbers, IF lcy retraces from here, then 16c is 38% fib. LCY is strong and I would expect this level to hold, but if sellers come in - and I am guessing there are probably still a lot of people holding from 19 and above who are keen to get their money back and get out - then14.5 is the 50% fib. I really can't see it going lower than that.

However, todays's action - the candle and the volume - will show up on a lot of people's scans tonight, so I would expect buyer interest tomorrow from them.

Additionally, the large volume may have attracted the interest of a few financial journalists who would read the announcement to see what is going on. So, if LCY makes the newspapers tomorrow morning there could be another spurt higher.



IMO these types of candles (whatever you call them) often point the way higher rather than indicating weakness/failure/retracement in the sp.