Keep One Foot Out the Door
As longtime readers will know, I watch both the time and price axis of the market to help determine when a move may be ending, even if only temporarily. Currently, Priceline (PCLN) is flashing technical signs of both kinds that its current rally may be coming to an end.
On the price axis, I watch for Fibonacci extensions of prior swings as well as symmetry projections -- that is, 100% projections, or "measured moves" of prior swings in the same direction. Fibonacci price extensions are essentially retracements of prior swings beyond 100%. The extension ratios that I typically use are 1.272, 1.618 and 2.618, and I will watch for possible support or resistance when one of these ratios is approached....456 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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