Yesterday fibonacci ratio 0.618 work perfectly as a support level for Yahoo (YHOO). Note that we also have the 20 day moving average working as support.
The Fibonacci number series, with the name of a italian mathematician Leonardo Fibonacci, appear in a lot of patterns in nature and also appear frequently in financial markets patterns.
The property behind this number series is that each number is equal to the sum of the two preceding numbers and in order to determine support and resistance levels we use ratios derived from this sequence. The most important are 0.382, 0.5 and 0.618, important levels to anticipate the end of a pull back. In this case, yesterday, the ratio o.618 (any number in the serie after the first five divided by the next number) work perfectly. The question now is: The movement will continue? Our recommendation is to enter long if you have intraday evidence with a stop at 27.4 usd.
The Fibonacci number series, with the name of a italian mathematician Leonardo Fibonacci, appear in a lot of patterns in nature and also appear frequently in financial markets patterns.
The property behind this number series is that each number is equal to the sum of the two preceding numbers and in order to determine support and resistance levels we use ratios derived from this sequence. The most important are 0.382, 0.5 and 0.618, important levels to anticipate the end of a pull back. In this case, yesterday, the ratio o.618 (any number in the serie after the first five divided by the next number) work perfectly. The question now is: The movement will continue? Our recommendation is to enter long if you have intraday evidence with a stop at 27.4 usd.
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