Tag: Fibonacci Analysis

This Stock Could Appreciate 50% In The Next 6 To 12 Months

Posted on by The INO.com Team

In case you missed it yesterday, Alibaba Group Holding Limited (NYSE:BABA), took a 5% position in Groupon Inc. (NASDAQ:GRPN) which was enough to push this stock up 40%. Yesterday's action by Alibaba was seen as a black swan event that could not be predicted by any indicator. Groupon had been in a steady decline after hitting a peak of over $27 when it began trading. Since that time, the stock has steadily moved lower and recently traded perilously close to the $2 level.

As I have said many times before, perception is very important in stocks. The fact that Alibaba took a 5% stake in this company should not be overlooked.

Technically speaking all of the Trade Triangles turned green and positive yesterday for the first time in a long, long time. You also saw a 12 month downtrend line broken to the upside which also helped change Groupon's momentum.

Daily Chart of Groupon Inc. (NASDAQ:GRPN)

With all of these positives happening to Groupon, how high can this stock go? Continue reading "This Stock Could Appreciate 50% In The Next 6 To 12 Months" →

Gold Update: Unstoppable?

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


It's been awhile since I posted my last gold update in October. I haven't written about gold because everything was going by the plan: gold fell right after the post and even hit a new low making bears happy. I expected to wait for the week of the 29th of February as it was my time target in that update. But gold's price overshot the recent high which was the starting point for the last drop towards the new bottom invalidating the experiment.

Below is the chart from my earlier gold post to refresh your memory. I added blue call-outs with some new comments to show where it went wrong.

Chart 1: Updated Experimental Gold Chart

Updated Experimental Gold Chart
Chart courtesy of tradingview.com

I shadowed the part of the chart before the post date (October 22nd) to highlight the progress of the price. Gold quickly plunged down from the post date. It went all the way down with the largest drop in November and hit a new multi-year low at the $1046 level at the end. Continue reading "Gold Update: Unstoppable?" →

Major Alert: Amazon (NASDAQ:AMZN) Flashes Its First Major Sell Signal In 16 Months

Posted on by The INO.com Team

In the first 30 minutes of trading today, Amazon.com Inc. (NASDAQ:AMZN) triggered a red monthly Trade Triangle indicating a major trend change in this stock. This could be partly due to Amazon's announcement yesterday that it planned on opening 400 brick and mortar bookstores. So after putting almost every bookseller out of business, Amazon is now going into the brick and mortar business. Could that be a big mistake for Amazon?

Daily Chart of Amazon.com Inc. (NASDAQ:AMZN)

Technically speaking, Amazon could quite easily fall back to the $441.95 level which represents a 61.8% Fibonacci retracement. That is $100 lower than the current price. Personally, I love Amazon, I shop there all the time, but right now I do not like the stock of Amazon. I think that Amazon is setting up to go lower based on the Trade Triangle technology. If my analysis of Amazon is correct, it does not auger well for the rest of the market or the economy. Continue reading "Major Alert: Amazon (NASDAQ:AMZN) Flashes Its First Major Sell Signal In 16 Months" →

USDJPY: "Diving" For Opportunity

Posted on by The INO.com Team

By: Elliott Wave International

On a recent vacation to the Yucatan, my friend decided to get certified in scuba diving.

I, on the other hand, prefer breathing my air above water! But I did tag along with her to one of the classes, anyway. She learned how to handle and interpret all the various diver gauges: gas pressure, submersive pressure, depth, and on.

The one feature all those indicators had in common was a bold, red line to indicate the level the diver must obey to stay out of danger.

That's when it hit me: Scuba-diving is a lot like financial markets. Investors and traders jump in -- and use an array of safety gauges to keep them on the right side of price action.

Well, at least those investors and traders who use technical market indicators. For them, those bold, red lines indicating the point of danger -- those are equivalent to the most critical component of market analysis: protective stops. The second prices cross this line, it's time to "swim back up to the surface" and safely re-adjust your position.

For any investor/trader, then, the ultimate goal is to clearly identify these life-"lines" ahead of time, before jumping in. That, dear friends, is where our newest, FREE report "How to Set and Manage Stops With the Wave Principle" comes in.

Here is an excerpt: Continue reading "USDJPY: "Diving" For Opportunity" →

Silver Update: Killing It Softly

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Experiment Results

It's time to check the results of my silver analysis. Back in November, I wrote an update on silver, in the first part of which I made an error analysis session of an earlier post and in the second part I added an experimental clone chart. There were two calculated targets: a price target and the time target.

In December, I was out of patience and was going to write a post once silver hit the price target. But it was crucial to wait until the time came to check both results on the date outlined in my earlier post. Below I've included the experimental clone model chart from my earlier post and added fresh comments highlighted in red to show the results and changes for your convenience.

Chart 1 Silver Weekly: Amazing Math

Silver Weekly Chart
Chart courtesy of tradingview.com

What do we see? Let’s start from the pleasant result. Yes, the price target was hit accurately almost cent to the cent: The $13.65 projected target versus the actual low of $13.63 in December. I was really surprised by this outcome as it strengthens my confidence in the world of numbers. By the way, the AB/CD concept target ($13.7) from my September post has also been hit. Continue reading "Silver Update: Killing It Softly" →