Home /  Tag: fibonacci

Tesla (TSLA) is offering Investors a chance to buy on dips

Recently, I’ve been noticing that Tesla is behaving very predictably based on the guidelines of fibonacci levels. If you’ve been following me for a long time, you know that I like to use fibonacci retracements to time entries and exits in trades. I also like to use volume by price analysis in conjunction with fibonacci to confirm my trading biases. A traditional volume indicator shows volume by day below a price chart, but the Volume by price indicator displays to the right side of the price chart, and shows the amount of trading volume that has occurred at various price levels. Price levels that have seen large volume can be thought of as Support and Resistance just areas just like we use Fibonacci levels to denote support and resistance. Combine the 2 together and you have 2 powerful indicators that create trade decisions when they coincide. (more…)

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Bear Rally in Gold (GLD) confirmed by Technicals and Options Flow

For those of you who have been following Gold’s price movements over the last year, it’s well known to you that the precious metal has been in downtrend the entire year, as GLD fell in January from $164 down to a low of $114 in July. Since that time, GLD has made a few bear rallies, only mustering 2 rallies that ended near the same level near $137.50, which is a little less than a 50% retracement of the year’s decline. (more…)

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Apple’s Next Rip Could Take Us To $580

Making price projections for stocks that are making new highs is more of an art than a science. It is comparatively easier to construct price targets for a trade when there are well defined support or resistance zones for us to use as estimated levels. The challenge with stocks that make new highs is that we can’t always predict when a stock will see profit taking. One way of making price projections for these stocks is to use fibonacci extensions. Usually the 161% and the 261% extensions are ones we can use as targets. (more…)

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Crack Open a Cold One (BREW)

Craft Brewing Alliance (BREW) makes and markets beers under the brand-names Widmar Brothers, Redhook, Kona and Admission. Like a number of other brewers, their business has been growing over the last few years. However, we think the potential for growth hasn’t been fully priced in and see a great entry point for bulls following the soft reaction to their last earnings report on November 6th. Investors don’t seem to be pricing in the growth opportunities that are continuing to emerge, which is good for us. (more…)

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Tempurpedic (TPX) finds support at its 50% Fib as Earnings approach

Shares of Tempurpedic (TPX), maker of the famous comfort pillows and mattresses, have been on a slide lately, ever since industry peer, Select Comfort (SCSS), reported an earnings miss on October 17th. SCSS shares dropped 28% that day, and TPX dropped 9% in sympathy. SCSS issued weak forward guidance (blaming it on a weak macro environment) which is really what brought the stock down. (more…)

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Sodastream (SODA) has multiple signs pointing to a Bullish Reversal

Sodastream has been in a downtrend since a Sept 16 peak at $69.35. It’s currently trading around $63.20, but I see some encouraging signs on the chart that tell me now is a good risk/reward long entry point for the stock. On the 3 month chart, you can see a very well defined support zone between $62 and $61.50. That area has been solid support since August, as price has fallen to it on 9 occasions and successfully bounced higher. Price came close to getting near that zone yesterday, Sept 30th, but managed to close off the lows of the day and closed near $62.50. (more…)

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Gold retraces 50% of its rise, and bounces

Gold is in the crosshairs next week when the Fed decides whether or not to execute the taper. This morning, there was speculation that Fed chariman Bernanke will be succeeded by Lawrence Summers, known to be hawkish in his policy stance. Hawkish would mean a faster withdrawal of Fed stimulus, and a more aggressive taper. Gold prices gapped down this morning on the rumors. (more…)

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