Some technical analysts swear by the Fibonacci series of numbers, where each number equals its two predecessors added together. On this theory, a stock market trend is likely to retrace itself specifically by either 61.8%, 50% or 38.2%. The Fibonacci sequence helped to inspire Elliott Wave theory. This holds that market cycles have an impulse wave of five parts, reaching new highs, which is followed by a corrective wave of three parts. The waves interrelate according to various rules, including the Fibonacci numbers. The problem is, where does one wave finish and another start.
Reckon we are now looking for a higher-low if indeed we had it yesterday at 0.645c the fulcrum sits at 0.655c
1 Wait and look for the next higher-low - that number will identify our fulcrum 2 Provided the higher low is not broken (a new higher-low) 3 Wait for the first pass above the fulcrum 4 Wait for a drop again below the fulcrum 5 Then provided the pattern with the higher-low is not broken again.... 6 On the second raise above the fulcrum - BUY this is a buy signal.
Lets see how we go......
RES Price at posting:
65.0¢ Sentiment: Hold Disclosure: Held
