buy the fact when it is better then the rumour, page-65

morning bitzer,

I had to chuckle when I read your post...

"I am trying to improve my TA skills but still choose my stocks from fundamental perspective."

I'm the opposite. I'm trying to improve my FA skills but still choose my stocks from a TA perspective.

Here's some more TA for you. Fibonacci retracements and extensions.

After a significant move (either up or down), prices will often rebound and retrace a significant portion of the original move. As the price retraces, support and resistance levels will often occur at or near the Fibonacci Retracement levels.

Stocks will often pull back or retrace a percentage of the previous move before reversing. These Fibonacci retracements often occur at three levels – 38.2%, 50%, and 61.8%. Actually, the 50% level really does not have anything to do with Fibonacci, but traders use this level because of the tendency of stocks to reverse after retracing half of the previous move.

In practice, most traders use Fibonacci extensions in combination with other technical indicators/patterns to help them determine appropriate target prices. Fibonacci extensions consist of all levels drawn beyond the standard 100% level and are used by many traders to determine areas where they will wish to take profits. Calculating Fibonacci extensions work best when stocks are at new highs or new lows - where there aren't any obvious support or resistance levels on the chart. So, if you are long a stock and it begins to make new highs, and you want to take profits, you can calculate the extension levels to get a general idea of where it may begin to fall.

I have a chart below showing the fibonacci retracement for NGE. I have noted this before, but there is a short term pattern where NGE seems to retrace to roughly the 38.2% level before resuming its upward movement.

I have a chart below showing the fibonacci extension for NGE. The first level of 38.2% is 37cents.

Interesting stuff. If the recent trading patterns continue then the chart shows a continued progressive move well into the 30's.

cheers
Ange