The thing with fibonacci is it's difficult to use in isolation. I've tried it before when I first heard about Fibonacci and it was very frustrating.
It's when you combine fibs with other TA which make them powerful. Other TA that I use is Elliott Waves, chart patterns etc... The other TA are what gives you a guideline of which Fib level to use.
BRN is a bit hard to decipher. It looks like the start of an uptrend, but more likely could be making a head and shoulders pattern. This means that even though the share price went past the 61.8% retrace line and bounced back up, the share price could go further down. It could go a bit higher before it goes down again though.
The reasons why I think a head and shoulders pattern may be in play are because:
- Looking at that first wave 1 denoted by the purple, the subwave 5 didn't go above subwave 3.
- The current downtrend looks incomplete, the shape of it and the amount of waves down.
The whole pattern looks a lot like 4DS.
BRN is a chart I would watch but not buy because there are other surer stocks available.
Ofcourse I may be totally off but this is how I see BRN at the moment.
