IHL Chart Technicals, page-147

It's a Fibonacci retracement. Patterns form in the chart to help as indicators.

The retrace today is effectively a 38% retrace of the price from todays high, from the previous low (4.1c on the 10th July).

Hope I'm explaining it right. There might well be a much better chartist who can explain it better.

(P.S it has nothing to do with the fundamentals of this company, hence why we are talking about it on the chart technicals page .)