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Fibonacci Retracement Reference Levels on the US Indexes

Today’s post at the Green Faucet’s Technican’s Edge Column serves as a reference for the current dominant Fibonacci Retracement levels to monitor. I’ll re-copy some of the charts here, but the full commentary is at the column.

RIMM Shows us a Lesson in Open Air Pockets Mar 9

I wanted to highlight an important lesson we can learn from the recent breakout action in Research in Motion (RIMM) as it relates to “Open Air Pockets” and how traders can manage risk and take advantage of these opportunities as they develop. Let’s take a look and see what RIMM’s recent chart can teach us

Russell 2000 Makes New Recovery Highs but Must Break Weekly Resistance

In an interesting turn of events, the Russell 2000 “Small Cap” Index broke to new recovery highs last week in a sign of bullish strength, but now faces headwinds from the weekly 200 period moving average. Let’s take a quick look at both the daily and weekly Russell 2000 chart to see what level we should watch for important clues as to the strength - or pause - in the recent strong rally. Russell 2000 Daily: In the daily chart, we see one of the most powerful sustained rallies on the Russell 2000, which gave us 16 “up” days and 3 “down” days since the early February low of 580.  The first rally witnessed roughly nine consecutive days of gains

Resistance to Hold or Break on SP500 Daily Feb 16

I wanted to do a quick update showing the key resistance level at 1,100 that either will hold as an overhead sell signal, or break as buyers continue pushing prices higher, triggering a “popped stops” rally if they can move the index above 1,100. Let’s see this on two quick daily charts: We see that price bounced off the 38.2% Fibonacci retracement taken from the July 2009 low to the January 2010 high, forming a long lower shadow hammer/doji candle.

Fun Intraday SPY Fibonacci Confluence Grid Feb 8

It’s hard to come up with a good title that gets you to read a post about “Fibonacci Confluence,” but it’s an important and useful tool you can learn - if you haven’t already - that can help you uncover possible targets for intraday traders to play for, and also areas of hidden resistance (or support) that sets up a reversal trade when combined with other indicators.

Key Overhead Resistance Noted on Monthly Nikkei

For those of us who follow overseas markets, I wanted to share a quick reference to the overhead resistance levels and structure as seen on the Monthly Japanese/Tokyo Nikkei Index. Let’s take a look (monthly): Starting with the October 2007 peak (a few months prior to the October SP500 peak) and ending with the October 2008 and March 2009 lows, we see the following Fibonacci Retracement grid, which marks the 38.2% resistance level at the 11,270 level. Price recently inflected downward in January off the 11,000 level and closed under the 20 month EMA, currently situated at 10,560

Intraday Fibonacci Confluence Example SPY Jan 25

Admittedly, it’s not the most exciting blog post title, but I always enjoy highlighting quick tips whenever possible on intraday trading tactics, and Monday’s action gave me a great chance to share a quick example of a near-perfect intraday Fibonacci Confluence. Let’s see it and learn how to use this trick in the future. Starting with Thursday’s end-of-day swing high at the $112.40 level and then drawing a second grid at Friday’s intraday high at $111.60, we then draw two standard Fibonacci Retracement grids down to Friday’s intraday low at $109.10

Intraday SPY Fibonacci Projection and Retracement Example Dec 28

I know - the title sounds… less than fun… but for those of you interested in learning intraday Fibonacci methods, today gave a great example of both the Retracement and Projection concept, and I wanted to share that lesson with you. Let’s take a look at the SPY intraday chart (5-min) for December 28th: If you feel overwhelmed, let’s take it one step at a time.

Knock Knock Knocking on Fibonacci’s Door SP500

To quote an old song by Bob Dylan, the S&P 500 is “Knock, Knock, Knocking on Fibonacci’s Door,” … meaning the intraday S&P 500 keeps bumping against this critical level of resistance that marks a key turning point between Bull and Bear. Let’s take a closer look. This is the 30min S&P 500 intraday chart (with 20 and 50 period EMAs) with the 1,121 level marked on the chart.  We touched this level intraday this morning and seem to be making a mid-day attempt to test this level again.

Long Term Monthly Fibonacci Levels to Watch in the NASDAQ

Per a reader’s comment, I wanted to show a quick reference grid of the NASDAQ Index stretching back to the 2000 peak above 5,000 and show three dominant Fibonacci Grids to watch as price moves into the future. Let’s see the 10-year grid, starting with the 2000 high and stretching to the 2002 low