Technical Analysis: Key Focus Areas, Head & Shoulders Pattern, and Fibonacci Support

2.a Technical analysts believe it's best to concentrate on studying historical price and volume data in order to predict future price movements.

2.b The Head & Shoulders pattern is regarded as being complete when the price breaks below the 'neckline', which is the line connecting the lows of the two shoulders.

2.c To calculate the first Fibonacci support level, we need to calculate the retracement levels. The retracement level is the percentage of the total move that the price has retraced.

First, we calculate the total move: Total move = Top - Low point Total move = 9852 - 9513 Total move = 339

Next, we calculate the retracement levels: 1st retracement level = 0.236 * Total move + Low point 1st retracement level = 0.236 * 339 + 9513 1st retracement level = 80.004 + 9513 1st retracement level = 9593.004

Therefore, we would expect the first Fibonacci support level to occur around 9593.004.