macd & fibbo

ADO has behaved according to fibonacci levels very well for nearly a year.

Examples -

10.5c high on 31/5/11 to 5.4c low on 4/10/11 then 61.8% retracement to 8.5c held on 14/12/11

5.4c low on 4/10/11 to 8.5c high on 14/12/11 then 61.8% retracement to 6.6c on 10/1/12

Next level is -

8.5c high on 14/12/11 to 6.6c low on 10/1/12 means the upside target is 7.8c for 61.8% Fibonacci to be respected.

This will be interesting cause if it goes any higher than current levels then the MACD will cross over which has also been a dominant momentum force.

Examples -

MACD crossed for a buy on 9/5/11 @ 7.1c and for a sell on 3/6/11 @ 8.6c after going to 10.5c

MACD crossed for a buy on 24/11/11 @ 6c and for a sell on 20/12/11 @ 7.3c after going to 8.5c


Today the MACD is even so it may or may not cross but if it does then we should have about 3-5 weeks of upside if previous patterns are held true. This should take it through the 7.8c Fibonnacci resistance this time and break the retracement control that it has been demonstrating.

Looks to me like we will muddle to 7.8c but the MACD crossing might cause it to break that level which means anything can happen. If those offers up to 7.7c are real then it will take some good buying to get there but pretty easy to see that it could really take off after that.

The combination of AFR smart investors tip for 2012 and daytraders could cause a few solid buying sessions this week.