art of fibo example 1

Tue 12/4/2007 136pm

let's look at goog with fibo readings

for the year, goog which is currently number 2 in the chiu index at 10.96% has moved within a low of 437 (3/5) to a high of 747.24 (11/7) in 2007.
50% fibo retracement is 592.12
61.8% is 628.73

key points:

1. goog corrected recently and traded to 616.02 (11/16) after that 747.24 high and closed at 633.63 on 11/16. that's a 63.38% retracement and close enough to the classic 61.8%

2. goog then rallied to 711.06 last friday 11/30, this is 72.43% of the recent down leg

3. current down leg is from this high print of 711.06.
76.4% retracement is 688.63
61.8% retracement is 674.75

look for 674.75 to be an important support for goog if current direction is to the upside.

paul