ASI at 50% Fibonacci Retracement area

nkuda · 1 ASI at 50% Fibonacci Retracement area Sat Jun 02, 2012 8:51 pm

nkuda

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ASI at 50% Fibonacci Retracement area Asi10

pathfinder · 2 Re: ASI at 50% Fibonacci Retracement area Sun Jun 03, 2012 4:26 pm

pathfinder

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I think it's around 4700

Antonym · 3 Re: ASI at 50% Fibonacci Retracement area Sun Jun 03, 2012 5:38 pm

Antonym

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watch dog wrote:I think it's around 4700

50% retracement is at 4736
61.8% retracement is at 3998

But don't bet your bottom dollar on a turnaround at exactly these points: Fibonacci has certain limitations:
Even though Fibonacci is readily referenced by traders and technical analysts, the value of Fibonacci analysis from a practical viewpoint is not clear. For example, one limitation of relying on Fibonacci analysis is that, without further or outside analysis, there is little way of knowing in advance which Fibonacci level will provide the anticipated support or resistance level. While it may seem obvious by looking at an historical chart, the trader really has no way of knowing on a real-time basis which level will hold.
http://www.worldlinkfutures.com/fibonaccitrading.htm

Kumar · 4 May bad month for bourse, loses 587 points Mon Jun 04, 2012 8:39 am

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The bourse extended losses for the second consecutive week. The All Share Index closed at 4,885 almost 124 points lower than its previous week. The Milanka Index fell 183 points to close at 4,343.

"Earlier the week began on a pessimistic note and the markets fell sharply in the first two trading days of the week. There was no stopping for the markets as the stocks fell amid thin volumes, however the markets stabilized during the mid of the week after touching the lows of 4,803 and managed to register some gains on Friday," Bartleet Religare Securities (BRS) said.

"The major gainers this week were SLTL.N, CTLD.N and SINS.N. The major losers were NDB.N, SAMP.N and RICH.N.

"The month of May 2012 has largely been a bad month for the bourses as the All Share Index declined almost 587 points or 10.83 % in this month, the biggest percentage fall on a closing basis over the last couple of years.

"After a big fall it is normal for the markets to take a pause and move sideways and then the market makes up its mind and then it takes its own path. If we look at the monthly chart we will find that the markets are falling in a well-defined channel, but technically the markets take support at their Fibonacci retracement levels.

"These retracement levels are used to identify potential reversal levels. The retracement levels are

23.6%, 38.2%, 50% and 61.8% of the rise. We have broken the 38.2% level and are currently trading above the 50% retracement level which is around 4,650.

"Historically, it is seen that this level of 50% provides good support because of the tendency of the stocks to reverse after retracing half of the previous move. Currently we are near those levels and the markets can take support at the 50% retracement and if the markets start to consolidate and then begin to move up or show some signs of reversal around the 50% retracement then we can have a possibility of the markets moving up from there. In case this level of 4,650 is broken then it will mean that there is still downside left and the markets may drift down further," BRS said.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=53510