Fibonacci Retracement Levels scores hat-trick with Straits Times Index
76.4% Fibonacci Retracement Levels predicts three major turning points for Straits Times Index
I hope by now you really believe it or you don’t. So this posting I hope will reinforce your conviction to master concepts of Fibonacci Retracement Levels or you are totally turned off by my persistence. Especially an hour ago I just posted the twin brother of this post and its called ‘Fibonacci Retracement Levels scores hat-trick with Hang Seng Index‘. Without further ado, I present Exhibit 1.
Evidence #1 – Market Correction following Tech Bubble
- Straits Times Index rallies from bottom of Asian Financial Crisis to top of Tech Bubble.
- Market subsequent corrects following the Tech Bubble burst and then 9-11. Found support at 76.4 percent fibonacci retracement.
- Subsequently this bottom was tested because of the SARS Epidemic and found valid.
Evidence #2 – Market Correction following Lehman and AIG crisis
- Market rallied to new highs in 2007 but subsequently collapsed following US Subprime Crisis.
- Support was found in 2008 and vindicated in 2009 when the Straits Times Index got supported at 76.4 percent fibonacci retracement level drawn from 1998 low to 2007 high.
Evidence #3 – 76.4% resistance despite central banks massive stimulus around the world; solid growth numbers
Lifting what I wrote here ‘Technical analysis: N225, HSI, STI price action rejects Fib ratios‘
Straits Times Index pin bar, bull trap, 76.4% Fibonacci ratio
- Straits Times Index does a bull trap at the 76.4 Fib ratio.
- Back late-2010, there was a near test.
- Price candle is a pin bar albeit short tail.
- But with confluence and when printed on monthly chart, a short-tailed pin bar should still have plenty of significance.
- Wash N Rinse.
What is in it for me? Its great on hindsight but is it any good forward looking?
Presuming that the current high is a turning point indeed; that its violation will make any prediction by Fibs useless. The level to watch is in the chart.