As we see, the market had previously finished an accumulation, advancement and distribution phase. Price had broken out of the distribution range to the downside but has now retraced back into the distribution zone. This latest price action could be a fake breakout, or could merely represent the beginning of an advance higher. A strong support level has been identified at the 61.8% level, which may give us an indication that price might fail to break this level and begin declining. However, the price may break above that level and continue to a resistance level established at the 78.6% level. If price breaks above this level it may well be returning within the distribution range and possibly move higher.