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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: tyc:> who wrote (103437)	1/18/2008 11:43:34 PM
From: Mario :-)	Respond to of 312356

<< Take another look at your chart here. It looks as if that lower low was made today. >> OK, will take another look <g> Here is updated version: I've added Fibonacci levels. Yes, you are right, we have lower high and now lower low. This is bearish. Now, will it go down and how far?!? I don't know. Note, that right where we are now, we have resistance: - 200 day (40week) moving average - red line - 50% fib level (don't know how to write retracement) Actually it is quite interesting, that there shouldn't be 50% fib. It never existed in original form. But it was later added and now every charting software draws this non existing 50% level. But since it is now there, most of traders look at it as another support/resistance level. So, how to read this chart? You need to come up with: 'what will majority traders see in this chart?' Will they say: - lower hi, lower low, this is going down, I'm shorting or - wait, it is bearish, yes, but we are right at support, actually double support, so it may first bounce up Volume would help, but we don't have it. Is higher volume on down candles or up candles?!? Two most likely scenarios are: - bounce up from here up to (a little over) 38% fib (around 100) then down to lower fib 62% (95-94) - straight down to lower fib 62% (95-94) then bounce up So, in a nut shell, I don't have a clue, sorry. All I know is, that current pattern is bearish.