chart please, page-24

Dingo

I'm no chartist, but I am trying to learn some of the T/A approaches. I have been doing simple "Fib" calculations, which I became aware of on another thread, and I am witnessing prices moving in line with the resitance/support lines.

My simple calculation for a CNP expansion is:

Low 15/5/2008 0.34
High 5/5/2008 0.495

23.6% 0.377
38.2% 0.399
50.0% 0.418
61.8% 0.436

This is based on the following formula:


Expansion equation :


L + 0.618(H – L ) = Share price will move up to


My interpretation of these numbers today is that the SP moved easily through the resistance line of 0.375 (0.375 rounded down), which then became a support line, and bounced against the next resistance line of 0.40 (0.399 rounded up). Given more time, I feel that 0.40 would have been broken today and the next move up would be 0.42.

So I guess tomorrow my strategy will be to watch the open to see if 0.40 becomes support. I might then buy some more at .41 if I get the chance.

Basic stuff, but my losses are lower since I started putting some T/A into when I buy or sell.

I would love to hear if I am totally on the wrong tram here, or do I at least pass as T/A beginner.