Of intellectual interest only (I'm not calling the bottom):
An interesting, potential bullish reversal pattern has shown up in the Naz weekly chart this week, based on convergence of some very minor fibonacci numbers. Here is the chart:
stockcharts.com[w,a]wcclnimy[d19980901,20010401][pb13!g30!f][vc60]
The fibs are:
(a) a perfect 2.00 retracement from the May 2000 low to the July 2000 high coincides with this past week's low at 1794.
(b) the .886 retracement from the October 1998 low to the all-time high is 1785, or just barely below this week's low. (The .886 is a derivative fib number. I have often referred to .786 as a useful fib, as the square root of .618. Well, .8866 is the square root of .786. As I said, a very minor fib number, rarely used.)
Perhaps of more interest is the weekly candlestick. The first in 9 weeks to close above it's open, and, more significantly, to close in the upper third of the range.
Good indications of at least a technical rally to start from near this week's lows, and probably within a week or two.
Good trading,
Phoenix |
