The chart shows the rally has lifted the index back to the 5400 level, a 61.8% retracement of the November fall. This level acted as resistance on two immediately preceding occasions. What are the likely paths from here?
The MACD continues to widen, suggesting increasing positive momentum. The RSI is in positive territory, yet has not reached overbought levels. These indicators combined suggest there may be further steam in this rise. However, given the coincidence of the resistance and the 61.8% level, some caution is advisable.