Before anything else, caveat emptor.
It’s been a while since I posted stock charts. Been trying to study, read and practice. For this post, sharing with you my attempt on using Fibonacci retracements. It’s one fascinating charting tool that I’ve been trying to get more acquainted with (together with harmonics). Here’s a quick review of fibonacci retracements from Investopedia.
Formerly known as PSPC (Phoenix Semiconductor Philippines Corp), the company is a major supplier of Samsung. It was renamed as PSE: SSP (SFA Semicon Philippines Corp) recently. It was listed late 2014 and since then the stock price has been going down and down until volume thinned out.
In 2016, it found support near 1.30 / 1.35 area but with resistance at the 23.6% Fibo retracement (~1.80), which was not conquered for the rest of 2016.
In early 2017, it successfully broke the 23.6% retracement / resistance and that resistance has now turned as support. Volume also came back, signifying renewed interest on the stock.
With momentum, stock easily breached the 50% and 61.8% retracements. It closed last week at 2.95, slightly above the 78.6% retracement, which is also the area of resistance in early 2015. Will the momentum be sustained this week? We’ll find out.
Otherwise, near-term support is at 50% retracement at around 2.37.
Once again, caveat emptor. This is not a solicitation to buy. Rather, an invitation for you (and me) to study more.
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