Fibo REtacement is a typical reaction to equities that is making a strong move up or down.
Looking at the chart, there was a strong run from $2.60 to $3.56, from this run a 50% correction to $3.17 was complete, it did touch $3.10 on that correction. the strong run from $3.17 to $4.70 was never corrected with so many gap up to consider. Huge correction became required as there is no more News to look up to until Brazil Show. Surprise News is now what this baby will wait for on a daily basis till then where a new road map develops for NOK
The $3.17 to $4.70. a 50% Fibo Retracement is now calling to take it down to $3.935. It should stabilize at this level. Corrections are at Levels commonly observed market retracement of 38%, 50% and 65% small pockets of correction occurs on those running equities up or down that range from 18% & 25%......Retracement on all equities are healthy signs
However, the Q4 result turned the tide around for NOK with traction of the Lumia sales that was of paramount importance on Q4 to show where Lumia is heading......with NSN + Naveteq + IP + Device & services made NOK profitable beating concensus by a wide margin from -0.08 to a positive result.
A new injection of product lines is forthcoming that will require new evaluation for the device & services. The Market will again require traction of those devices but will priced-in a marginal amount to bring the PPS to a new level from the above $5.00 price I considered the real value of NOK should be.
@ $2.60 Nok was way undervalued & deserved at $4.00......@ $4.00 NOK again became way undervalued & deserved to be at over $5.00. By X-mas 2013 with the current momentum NOK can be at $10.00
NOK is now profitable & a screaming BUY. And because of the profit I am making playing the high & low (besides my Long positions) using the Fibo Retracement Method, it became apparent that the media attacks on NOK is a great tool to make my long position taken down to Zero investment. Buy LOW Sell HIGH....I don't short NOKIA because of it's habit of strong GAP UP....Some of course can play the puts & calls......All the best to all retail investors. "You are like Me & I am like you" I can only but wish ALL the best!!!! Big Funds are merciless.....so...........
PLAY IT WELL ALL!!!!
DJI already made a huge run from 12,958 to 14,000....Fibo retracement is imminent anytime soon.
On June DJI at 12,1207 run to 13,600 Sept. 20 corrected to 12,588 Nov. 16 (65% Fibo level, precisely) Fibo level is at 12,625 for a complete 65%....
DJI 12,588 Nov. run to 13,350 Dec.18 was corrected to 12,958 Dec. 28 a complete 50% Fibo Retracement...
DJI 12,958 Dec. 28 run to 14,000 still running.....Find your level for a play when it retrace...
Very interesting, thanks! I'm not much of a technical investor, but I do think it is useful sometimes. I now have a small spreadsheet with your Fibo retracement info on it for the DOW, and I'll keep an eye on it. I think specific exogenous factors (Congress, Europe) will impact the Dow soon enough, but this is interesting. Also, I think the MWC will impact NOK. But, technical analysis has a place. Thanks again!
Dow Jones & Company co-founder Charles Dow. It was founded on May 26, 1896, and is now owned by Dow Jones Indexes, Fibo was observed here & have been known to work effectively since the early 1900, don't know when was that.
I extracted this from wikipedia:
--``In finance, Fibonacci retracements is a method of technical analysis for determining support and resistance levels. They are named after their use of the Fibonacci sequence. Fibonacci retracement is based on the idea that markets will retrace a predictable portion of a move, after which they will continue to move in the original direction.
The appearance of retracement can be ascribed to ordinary price volatility as described by Burton Malkiel, a Princeton economist in his book A Random Walk Down Wall Street, who found no reliable predictions in technical analysis methods taken as a whole. Malkiel argues that asset prices typically exhibit signs of random walk and that one cannot consistently outperform market averages. Fibonacci retracement is created by taking two extreme points on a chart and dividing the vertical distance by the key Fibonacci ratios. 0.0% is considered to be the start of the retracement, while 100.0% is a complete reversal to the original part of the move. Once these levels are identified, horizontal lines are drawn and used to identify possible support and resistance levels.``--
The ratio described at wikipedia below somehow is different from what I have but close, & can be considered the same, somehow 18% is not expressed.
--``Fibonacci ratios are mathematical relationships, expressed as ratios, derived from the Fibonacci sequence. The key Fibonacci ratios are 0%, 23.6%, 38.2%, 61.8%, and 100%.``--
It is also touted that the effectiveness of this formula is being recognized further with nearing to 95% effective due to short term investment that triggers profit taking & the now even more used & applied shorting method. Internet help in taking this ratio higher. I have effectively used this method since the year 2000 on the way down or on the way up. One do not need to know how to formulate the system. The fibonacci ratios provided is all one needs to calculate. Hope that helps.