Followers | 131 |
Posts | 4727 |
Boards Moderated | 0 |
Alias Born | 05/10/2004 |
![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Thursday, February 07, 2013 11:27:07 AM
I use Fib numbers to delimit the expansion and/or retrace levels.
I use some moving averages too, and a tight Stochastic & a tight Bollinger, but for the chart of SPOM to be explained visually, my first pass is to use a Fib retrace approach, with the 382, the 500, the 618 & the 786 as retrace lines.
To do a Fib analysis using 386, 50, 618 & 786, Make the LOD on 11/26/12 the low end & the HOD on 1/8/13 the high end.
The 786 retrace line is what jumps out at me when I look at the chart through the lens I explain above.
786 retrace is .0083.
So here's what I think is going on.
We retraced to the 786 level, took it out during the day of 2/5/13, and then closed right at the 786 on that day, forming a hammer candle at that close. As one guy I know talks about this hammer at the 786, he'd say that its done the work that needed to get done and now we wait for the next catalyst.
Now we are drifting sideways on negligible volume, waiting.
Tiny volume at a Fib line that is one of the standard support lines of the Fib approach says to me that there are no more sellers, but likewise, buyers have no reason impelling them to park money here.
With a catalyst event, the interest level will break and I think that selling has dries up. A general rule of thumb is that, if they can't take it down, they will take it back up.
Remember, a basic money maker for MM's is the miniscule fees they get by conducting businees for clients. So, thats why they want any stock to choose a direction. They make money when somebody shows interest and either takes it down on volume or runs it up on volume.
Thats my take. I think its going to run back upside once a catalyst gets PRed, but it still could wander further down and do a full 100% retarce.... what the guy I referred to above calls "A 100% move of the move."
Peace.
Imperial Whazoo
"Just my opinions, folks. Do your own due diligence & make your own decisions. DO NOT... I repeat... DO NOT make any investment decisions on my comments. They are my opinions. That's all they are... OPINIONS."
VAYK Exited Caribbean Investments for $320,000 Profit • VAYK • Jun 27, 2024 9:00 AM
North Bay Resources Announces Successful Flotation Cell Test at Bishop Gold Mill, Inyo County, California • NBRI • Jun 27, 2024 9:00 AM
Branded Legacy, Inc. and Hemp Emu Announce Strategic Partnership to Enhance CBD Product Manufacturing • BLEG • Jun 27, 2024 8:30 AM
POET Wins "Best Optical AI Solution" in 2024 AI Breakthrough Awards Program • POET • Jun 26, 2024 10:09 AM
HealthLynked Promotes Bill Crupi to Chief Operating Officer • HLYK • Jun 26, 2024 8:00 AM
Bantec's Howco Short Term Department of Defense Contract Wins Will Exceed $1,100,000 for the current Quarter • BANT • Jun 25, 2024 10:00 AM