Comp, it would be easier to explain if I could post a chart and if you have a charting tool that can plot fibonacci retracements you may like to do this for youself.
Now if we look to the week ending 27th Feb, 2009 and take the low as our turning point for the current uptrend then 1.3647 becomes our 0% value. We then go back to the previous high of the week ending 16 th Jan and take 3.0219 as our 100%. Fibonacci calculations then gives us a 161.8% value of ~4.1 cents, a 261.8 value of ~5.7 cents and a 423.6% value of ~8.5 cents. If you don't have a fibonacci charting tool then juat put in some horizontal support and resistance lines at these values and the chart you get is very interesting and has pretty accurately predicted support, resistance and channels. So according to Fibonacci, when we break out of the current channel and the resistance around 5.7 cents the next channel is between 5.7 and ~8.5 cents.
I hope this helps cheers P
PEN Price at posting:
4.6¢ Sentiment: Buy Disclosure: Held
