This week we look at GMG for our report…
Looking at the long term Monthly chart we see a market creating what appears to be normal fluctuations, but sometimes these swings can be signals for moves from which we can make profits. Especially when they are based on the Fibonacci values.
The chart shows a major low November 2016 from where prices rebound and a rally follows to a peak in June 2017. This chart then shows decline to July 2017 and a base is formed for a new rally. Prices rally to December 2017 where again the sellers begin to take profits.
We should use the Fibonacci retracement from all lows to highs, and sometimes the end of the selling occurs on a mathematical level which indicates a prolonged reversal, when this happens we can enter a trade expecting sufficient rise to ensure a profit from our trade.
Notice the low in Feb 2018 is almost exactly at the half way point of our retracement tool. We should then be focussing on the weekly and daily charts looking for signals to confirm a rise. The low in June at $7.60 is very close to the low in July, so now we have a double bottom low at a 50% level, a great chance for a profitable trade.
Best wishes to all,