A reasonable target would be [ W1=400-175 ; DJSH=230+Fib*W1 ].
By setting Fib=1.618 a value of 594 is obtained. Before reaching this number, more probably the index will find great resistance at the previous double top at the approximate level of 580, which (to my mind) would constitute a more realistic goal.
The Fib parameter of 1.618, from my experience, is not rigid and in the case of country indices depends on a beta function relative, for instance, to an all world index such as FTSE ($ FAW) [others may also be chosen].
In the present case, the appropriate period for beta function calculation is 2007-2009, during which the correlation between DJSH & FAW reached acceptably high values above 0.75.
Rules of Discussion on CAC Futures
2. Member's comments should lead to value addition in forum discussion.
3. If anyone is found making repetitive Explicit/Abusive/Racial comments, his account shall be banned and old posts will be deleted.
4. Providing Advice/Recommendations/Tips is fine but it should be free. Members cannot ask to be paid for it. Paid Advice is strictly prohibited
5. Spam links are not allowed. Too much promotion or using Contact info in ID will lead to account ban.
IMP : Members are requested to flag any violations to keep Forum Clean.