The Fibonacci Retracements Tool can be used to identify Fibonacci levels to estimate support, resistance or turning points. When there is more than one advance, chartists can apply this tool to both moves and look for a cluster zone. The chart for Akamai shows the Fibonacci Retracements Tool extending from the November 2008 low and from the July 2009 low. The 61.8% retracements cluster in the 26.68 to 30.75 area to mark potential support.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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