On last Thursday the EMI rose for the third successive day, gaining eight cents to 484 cents a kg, the Australian Wool Exchange (AWEX) said.

Wool's bounce this week followed a decline in the EMI in the previous week to 465 cents as the market approached its record low of 429.3 cents.

"The turnaround in prices this week was a positive change for the depressed wool market," woolbroker Wesfarmers Dalgety Ltd said in its market report on Friday. "This week's results go a long way towards confirming the view that the market may well have bottomed out," Bob Quirk of The Australian Council of Wool Exporters, said.

"Many within the industry consider this week's rally in prices a short term change with new lows yet to beexperienced while others believe the market may have reached its low point and is now on an upward trend," Wesfarmers said.

"A depth of buying interest not seen in months was evident as the market remained firm to the close of selling despite a large rostered offering," it said. Wesfarmers sees the market continuing to gain.

"The market has the potential to strengthen further," it said. "With good buying activity from Europe and China, supported by strong levels of enquiry from across the trade, the large offering next week in Sydney, Adelaide and Fremantle is looking encouraging."

"In (the latest week's sales in) Melbourne and Fremantle, the middle-range microns experienced the largest gains with good European business a contributing factor," Wesfarmers said.

Visiting Italian customers combined with excellent quality wool on offer saw strong demand sustained throughout the three days of selling in Newcastle during the week.