Knock, Knock….Who’s there? Uncle Fibonacci! No JOKE !!!
On 4/13 I shared it was time to “BE PREPARED” (see post here). The patterns and Fibonacci resistance suggested to protect and be PREPARED TO HARVEST. The market peaked 10 days later (4/23) after gaining less than 3% more. Uncle Fibonacci is knocking at the price door again!
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All of these markets created a rising wedge, which came to an end at their respective 61% Fibonacci retracement levels, back in April. Now each of these indexes are within 1-5% of the key Fib levels again! I take Fibonacci resistance very serious, even more so when the Dollar appears to be testing support, with 3% Dollar bulls.
Harvest right now? I WOULDN’T RIGHT NOW! I would encourage investors though to keep a comfortable stop in place. Some are more comfortable with a 3% stop, some in the 5% range. What is the right trailing stop? I don’t know! JUST HAVE ONE, because of who is knocking at the price door!!!