ONE44 Analytics where the analysis is concise and to the point
In this example we will go back over a previous post on MMM and show what preceded the $20 rally.
This post was on 12/10/20 and at that time they had just come off of 179.30 this was 61.8% of the 3/23/20 low and 4/24/19 high. Our target based on the 61.8% rule was to look for 61.8% the other way, this would have been 140.00. As always we watch all the retracements regardless of what the target may be, as was mentioned in that post and the video that went with it. The links to both are below. The break from this area was only able to get to 23.6% of the rally at 164.50, this next part is from the 12/10/20 post...
Now any break from this area that can only go 23.6%, 38.2% back of the rally, as the last two setbacks did, is a very positive sign and with a couple solid closes above 179.00, the long term target of 204.00 comes back into play. This is 61.8% back up to the ATH.
The rally so far after holding 164.50 has taken them up to 187.27 and with another close above 179.00 the long term target is 204.00, this 61.8% back to the all-time high.
You can now use 179.00 as the swing point, back below it run the retracements from the new high and watch 23.6% and 38.2% once again for support.
All of our Fibonacci Charts of the Week posts and YouTube videos remain a good source of information on the use of retracements regardless of when they were first posted, by showing how they have worked in the past it will help you understand what to look for going forward.