ONE44 Analytics where the analysis is concise and to the point
Our goal is to not only give you actionable information, but to help you understand why we think this is happening based on pure price analysis with Fibonacci retracements and Gann squares.
You can get all the rules and guidelines to the Fibonacci retracements on our website.
In this post I want to take you through the wild swings that happened from the 23rd to now. To some the $9000.00 rally and then the $7000.00 break, with a few other $3000.00 swings was utter chaos. Well, I am going to show you how it followed more than a few of the ONE44 Fibonacci rules and guidelines on the chart below.
The first big setback on the rally from the 23rd hit exactly 38.2% (1). The 38.2% rule says they need to hold this to keep the current trend intact and should go on to make new highs. The new high happened on the 26th. The setback from this high was a $3500.00 break that once again hit 38.2% (2). Another part of the 38.2% rule is that, not making a new high after holding 38.2% tells us of a possible trend change. This occurred at (3) when they failed to make the new high. The 78.6% retracement is a level where a lot of the failures to make new highs will happen and always worth keeping an eye on.
Now back to another part of the 38.2% rule, when a market does fail to make the new high after holding 38.2% the target on the next break is 61.8%.
The break from (3) almost did take it to 61.8% and the rally from there went right to 38.2% (4) of the current break keeping the trend negative. The break from there did take it right to 61.8% (5) exactly to complete the target when the break started from (3).
The 61.8% rule should send the market to 61.8% of where it just came from.
Having said that, we always watch all the retracements on any move regardless of the current target. The rally from 61.8% (5) could only get up to 38.2% (A) telling us the trend is still down and they went for new lows to complete the target.
The break from 38.2% (A) fell just short of 78.6% (B) and the rally from there went right to 38.2% (C) once again. This is the level that they need to take out to say the trend is turning positive and we would look for 61.8% (D) to start. Failing to get above this area (C) should send them down to new lows.
This is just a short term look at the market, for the long term levels to watch using these same rules and guidelines you can go to our website for updates, it is FREE.
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