Fibonacci Analysis: The Long Overdue Bull Run

Apparently, the much awaited uptrend is already long overdue. Bad news comes one after another which significantly affects PHISIX. Nevertheless, the index has shown signs of life as it remained in the consolidation stage despite the negative turn of events. Quite an achievement so to speak.

I ran a Fibonacci analysis on some stocks (including PHISIX) and found some interesting set ups. The chart below shows that PHISIX is just hovering above 23.6% of Fibonacci which is at 3800. This is applicable to those who are investing in mutual funds and UITFs since these financial entities are strongly affected by the stock market. As soon as PHISIX hits 3800 and bounces back up, it's a good entry point.

The charts below show some good stocks positions for several companies.

PCOR: Many are scared of PCOR because of the dip that it took for the last two months. The chart below shows that PCOR went up as it hit the 50% mark. 50% in Fib is quite strong (in my opinion). It is a little premature to take PCOR but this is definitely worth the look.

JGS: JGS hit the 23.6% mark at 21.5 and went back up. Confirmation is needed as usual to minimize the risk. The chart also shows that 21.5 is a resistance that might turn into a support if JGS would bounce back up. Other than Fibonacci, JGS is also resting on its uptrend support.

JFC: JFC is nearing to hit the 23.6% resistance at 85. If JFC will break it, it will indicate some strong bullish momentum. On a short term perspective, JFC is consolidating. It's undecided as to where to go so again, waiting for a confirmation would be wise before coming up with a decision.

EDC: EDC hit 23.6% at P6. Considering that this has some bullish momentum, this would most likely bounce back up. EDC got some good reviews for the year so I think that at P6, it is a good buy.

AC: Just like JFC, AC is up to challenge the 23.6% resistance at 360. AC was hovering around the 355-360 mark recently and should it get past 360, it will signal some strong buying.

Fibonacci Retracements only suggest where the price would possibly go next but doesn't exactly tell where it would head. It still needs confirmation of price action, other indicators, and fundamentals to further boost its reliability. Nevertheless, I remain optimistic on these stocks for 2011 and the bulls are just waiting at the corner.