This past week was excellent, hopefully next week will be better and with bigger move since the Fed is going to have a little party with us lol
Ok, let's get to analyzing..
After learning about the great Moving Averages (50ema, 100sma, 200ema) from our MA master 'Hakuna Matata', I have drawn my weekly fibonacci levels differently this week (weekly chart) and I will explain to you why.
As we know, Moving Averages provide Support/Resistance levels, so now have a look at the chart and see how nicely price reacted (I'm amazed!). Now let's add some Fibo's to our cocktail, the 200ema acted as a support (it barely touched it, but I'll take it as support) on 17/07/05 , now if you draw a Fibonacci retracement from this low to the high of 251.07
http://img405.imageshack.us/img405/1646/gjij9.gif
Now look at that 100sma and 50% level, they were both close to each other and price bounced off that area perfectly. I said last week 212 is next on the cards for GJ but I'll change it to 212-214, since our 61.8% fibo is at 215 and 200ema is just below it, 212-214 should be achieavable in the coming weeks/months.
Remember now, we have lots of supports to break before getting there.. I don't trade based on weekly charts, I just have them in order to have an idea of where price might go next.
Ok, let's get to analyzing..
After learning about the great Moving Averages (50ema, 100sma, 200ema) from our MA master 'Hakuna Matata', I have drawn my weekly fibonacci levels differently this week (weekly chart) and I will explain to you why.
As we know, Moving Averages provide Support/Resistance levels, so now have a look at the chart and see how nicely price reacted (I'm amazed!). Now let's add some Fibo's to our cocktail, the 200ema acted as a support (it barely touched it, but I'll take it as support) on 17/07/05 , now if you draw a Fibonacci retracement from this low to the high of 251.07
http://img405.imageshack.us/img405/1646/gjij9.gif
Now look at that 100sma and 50% level, they were both close to each other and price bounced off that area perfectly. I said last week 212 is next on the cards for GJ but I'll change it to 212-214, since our 61.8% fibo is at 215 and 200ema is just below it, 212-214 should be achieavable in the coming weeks/months.
Remember now, we have lots of supports to break before getting there.. I don't trade based on weekly charts, I just have them in order to have an idea of where price might go next.
Trade what you see, not what you think.