In 2023, the CCL Index experienced a -5.22% decline to 148.59, marking an -11.76% drop from the mid-April rebound high. Anticipated support for CCL is identified at the intersection of the orange horizontal line and the bottom of the light blue Fibonacci grid around 146.8. This support is fortified by the short-term backing from the 78.6%, 50%, 38.2%, and 23.6% levels of the grid (see the light blue arrows). Therefore, the orange horizontal line and the grid bottom at 146.8 are likely to provide short-term support.
Further significant support awaits at the green uptrend line from 1997, situated around 138 now. This enduring trendline has historically played a crucial role, serving as both support and resistance for CCL over 26 years. As seen in the green rectangular box between 2013 and 2014, the line acted as resistance for a sideways market over a year and a half. It is anticipated to now act as support, facilitating a similar sideways movement upon contact.
These support levels, while crucial, should not be perceived as opportunities to buy the market. Instead, their expected strength suggests a potential for rebounds or sideways movements, signaling a pause in the bear market rather than a resumption of the bullish trend—a vital consideration akin to a bus stop in a bear market, distinct from a bus terminal.
