From the volume distribution chart the Big Boys sold in late afternoon trading. The doji candlestick signals an indecisive market sentiment and warns of a probable stall in upward move from the green channel. Immediate resistance expected at 2.30 followed by 23.6% Fibonacci retracement level. Observe the price movement as it approaches each Fibonacci retracement level as they are high probable resistance and support levels.
Being a new stock with limited trading history the use of Fibonacci projection helps predict probable support levels below the 1.19 immediate support. Breakdown from this critical support may see a test of the projected Fibonacci levels plotted on the chart. Stay alert and be nimble in case important US economic data rocks or shocks the market.
Posts
No comments:
Post a Comment