The previous chart was not clear.
ALCOA INC is trading at a strong support zone that is also the 38.2% Fibonacci retracement level.
It should bounce from the 200SMA and also the strong support line for an upward retracement to at least $14.8 using fibonacci retracment. Assuming that this is going to be a bear trend.
However, since there may be another rally, I think I will sell some shares at $14.8 and if it drops, I will buy at $13.7.
If it does not drop, then I will trade another stock like Bank Of America (BAC).
2 comments:
according to your new chart we are sitting right at 61.8% retracement NOT the 38.2% retracement you claiming...Is that your mistake or I am not seeing it clearly...
thanks for clearfying it.
Hi, I like to do my Fibonacci retracement backwards (meaning 0% is at the bottom, and 100% is at the top)
This is my personal preference because I would like to make use of the Fibonacci extension of 161.8% as my price target.
This means I do it the other way, and thus my 61.8% is actually a 38.2% retracement.
Hope this is clear enough.
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