The stock rallied hard yesterday after dipping and likely trapping some shorts just below the ambush zone R91.74
Price has pushed back over of the 20/50 ema but it will be important to see some follow through today else a a short-term reset to R93-95 may be in order.
"The 61.8% level is a Fibonacci retracement level that traders use as a trading strategy for the Forex market, futures, stock trading, and even options. The Fibonacci retracement ratios are derived from the Fibonacci sequence, which is a series of numbers where each number is the sum of the two preceding ones. The 61.8% level is found by taking one number and dividing it by the number beside it on the right. For example, 55 divided by 89 equals 0.6179 or 61.79%.
Traders use the 61.8% level in various ways to support their trading decisions. Here are some common applications:
Trading Strategy: Traders use the 61.8% level as a proxy measure for support and resistance. They look for price bounces from this level to identify potential buying opportunities.
Fibonacci Extensions: Traders use the 61.8% level as a potential target for price extensions in an uptrend. They look for price moves that exceed the previous high and then retrace back to the 61.8% level before continuing higher.
Stop Loss Placement: Traders use the 61.8% level as a potential stop loss placement in case their trade goes against them. They place their stop loss orders below this level to limit their losses.
It’s worth mentioning that traders often use multiple Fibonacci retracement levels in conjunction with other technical indicators to develop comprehensive trading strategies.
Price has pushed back over of the 20/50 ema but it will be important to see some follow through today else a a short-term reset to R93-95 may be in order.
"The 61.8% level is a Fibonacci retracement level that traders use as a trading strategy for the Forex market, futures, stock trading, and even options. The Fibonacci retracement ratios are derived from the Fibonacci sequence, which is a series of numbers where each number is the sum of the two preceding ones. The 61.8% level is found by taking one number and dividing it by the number beside it on the right. For example, 55 divided by 89 equals 0.6179 or 61.79%.
Traders use the 61.8% level in various ways to support their trading decisions. Here are some common applications:
Trading Strategy: Traders use the 61.8% level as a proxy measure for support and resistance. They look for price bounces from this level to identify potential buying opportunities.
Fibonacci Extensions: Traders use the 61.8% level as a potential target for price extensions in an uptrend. They look for price moves that exceed the previous high and then retrace back to the 61.8% level before continuing higher.
Stop Loss Placement: Traders use the 61.8% level as a potential stop loss placement in case their trade goes against them. They place their stop loss orders below this level to limit their losses.
It’s worth mentioning that traders often use multiple Fibonacci retracement levels in conjunction with other technical indicators to develop comprehensive trading strategies.