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Sunday, October 16, 2005

Reentry signals for FDX

Exiting the FDX trade was not a bad idea, it is alway better to take profits and reentry, than to see profits evaporate.

But, how does one retenter at the top? Once again we look at the Fibonacci retracement for the clue. Using the StockCharts.com annotation facility, we find out where are the Fibonacci retracement points.

Should FDX exceed the high strongly on good news, I would not hesitate in entering a trade ($89.0).
Should the 68,2% retracement be exceeded to the downside, I would avoid a trade completely ($81.3).
Should the stock bounce from the 50% retracement line, with a BUY signal from the Oscillators, this would be ideal for me ($82.77)

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