Posted in Daily Report
By: Tom Gentile on October 24th, 2022 • 2 mins read
For those of you that have heard of Fibonacci and / or the Fibonacci sequence you likely heard that you can find the sequence in all aspects of life, from human anatomy to plants/nature and in architecture to give a few examples.
You can also see it in the financial markets, specifically when doing technical analysis.
The Fibonacci sequence can be used to establish horizontal lines on a chart to identify potential support or resistance price areas for a security. Let’s see if we can use the Fibonacci sequence to see if we can assess a potential retracement price level for this bounce in the stock market.
Fibonacci Resistance Levels for SPY
The Markets Potentially have More Upside
At least for equities, which are represented by the chart on SPY, based on the Fibonacci Retracement levels shown in Figure 1 there seems to be some more room for continued upside price action.
We will see how the markets close today, but things seem bullish for right now.
Obviously, the inflation concerns are still with us and the prospects for a recession look smore likely than unlikely, but this bounce off the October 13 low pricing for that day is underway and today’s price action gives indication it could continue.
Keep in mind we are in the beginning part of this quarter’s Earnings Season. As long as companies not only report earnings and revenue beats AND their forward-looking guidance is positive this should help bullish momentum to remain intact / continue.
App: Toms Option Tools
Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.
Other times I will have other charts may work to amplify my educational points.
Those options data lists, however, can be found on my app Tom’s Option Tools. Use your device to search up and download this app and get free access to the Morning Reports section of the app.
Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.