SM: First gap filled, onward to the 2nd gap?

SM made a strong move since Thursday last week trying not to slip down the 76.4% Fibonacci Retracement level which is our support line. Now that the gap below the 700 level has been filled, the next challenge here is for SM to break the 61.8% Fibonacci Retracement line. Is there enough power left for SM? If we look at past movements we could see that the 61.8% Fibo level had an interesting support/resistance incidents. If this stock will break the resistance line then the possibility of closing the next gap may happen before price will correct. If not then it might trade within the 650 – 720 range.

RSI or Relative Strength Index says it is still very healthy and weekly chart shows a red Hammer candlestick. Hammers are regarded as low reliability reversal pattern if seen at the bottom of the downtrend.

Caveat!

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