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.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.
