Retracements + Relative Strength
Don’t give up on previously strong stocks just because they may have slipped
a little. Stocks will often resurrect themselves following a 3-7 day correction,
and a good place to look for the end is around a popular retracement level, like
the 38.2% level.Â
12:36:00
Fiserv (FISV)
appears to have ended its latest pullback at a 38.2% retracement. FISV is
currently up 1.44 at 54.07 and is holding a three-month
relative strength rating of 63 from TradingMarkets.com.
Â
Â
Despite today’s choppiness, Fiserv
(
FISV |
Quote |
Chart |
News |
PowerRating) has
managed to remain in the green, and recapture the rising 20-day moving average.
Â
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For now, the path of least resistance appears to be toward a
retest of the June 29 high, particularly if the market can manage a two- to three-day rally. I like the way it is showing relative strength against today’s
action.
Use Fibonacci retracement levels to spot possible reversals at
the end of corrections. We often use these in conjunction with other technical
signals in the setups we profile in the Insights
From The War Room.
Until tomorrow,
Duke
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