ONE44 Fibonacci Chart of the Week

JPM

We believe that the Fibonacci retracements are the underlying structure of all markets and in these weekly examples we give educational and actionable information.

All of the rules/guidelines along with other examples can be found here,

https://www.one44analytics.com/fibonacci-retracements-rules/

This is an update to the JPM example posted on 10/25/20 and the 61.8% rule.

In the last update the actionable information was,

Currently, until they can get a couple solid close's above 106.00 expect the trading range to continue and look for a break to 61.8% of the current rally at 96.00. Once they can get a couple solid close's above 106.00, look for 61.8% back to the all-time high again at 116.00.  

Now,

The break from below 106.00 took the market right down to 61.8% of the current rally at 96.00 keeping the trading range going. the rally from there exploded up to 61.8% back to the all-time high, this was 116.60. The expected break from 61.8% is 61.8% back of where it just came from, this is 93.50. As always we will watch all the retracements on any break from here.

Currently,

Usually when they finally do get out of the 61.8% trading range, the last setback holds a tighter retracement, like 23.6%, or 38.2%, so watch 109.00 and then 103.00. Only getting back to these levels would be a very positive sign and with a couple closes above 116.60 look for 78.6% back to the all-time high at 127.50