Hi Ange. I met a very wise fellow at one of the HC Brissy meets by the name of Phil B and this is what he told me. If price bottoms and turns up then rises to a point of resistance and then falls away only to rise up again and break through the resistance line then come back to test this line of resistance from above to confirm it as support. This line of resistance is likely the 23.6% fib level of the range up. From this 23.6% level we can project up to where 100% of the range up will be using a simple ratio calculation.
In this case we could have assumed the price action at $2.49 was the 23.6% fib level.
($2.49-$0.098) / 23.6 x 100 = $10.13
so $10.13 was our 100% fib level and price target once it broke through $2.49. I've drawn this on the chart and as you can see the range has completed, also looks to be forming a double top.
Now Phil is a smarter trader than me so I'm inclined to believe what he told me. If looking for an entry from here I'd be waiting for it to break double top resistance first.
If you have been in this since 9.8c you are a smarter trader than me and you don't need me to draw a chart for you :-)
