One of the comments for my last article wanted me to post a chart to explain on how and why it was a 38.2 fibo bounce for the GJ. As specified in my last post, the GJ did manage to find good support at the 38.2 of the last wave and that support managed to hold for the weekend. Monday should be an interesting day with the support below and 23.6 of the wave just above the current price as the resistance.
To explain further, i have attached a chart below to show how i have plotted the fibos. This is the first time that i am attaching an image to my blog and so pls bear with me if there is something that is wrong with it. In the chart, you can clearly see the bounce from the 38.2. Likewise, you could plot the fibos for the other crosses as well and find that they too bounced from the various fibos.
I personally, dont feel that the 50.0 fibo as being very strong support or resistance. I have noted that the 23.6, 38.2 and 61.8 as being the strong fibos. I may be wrong though.
Happy Trading!!!
1 comment:
Cool..thank you for posting the chart!
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