Fibonacci Price Projection for QLGC

Here is a good example of a stock hitting a price projection.

Qlogic appears to have found resistance at a price projection level calculated by measuring a previous upswing and adding that swing to the most recent swing low.

Take the swing low at A ($41.26) and subtract from the swing high at B ($52.62), 52.62 - 41.26 = $11.36.

Add that price to the recent swing low at C ($46.76), and you have a price target of $58.12.

The actual high on 30 October 2003 - $58.30, close enough.  Traders who are long the stock would consider exiting part of a position or moving a sell stop order closer to current market prices.

Price projections give you profit targets

This price projection target doesn't mean that the stock will immediately reverse, but it does give traders a likely target that a stock might move to.

Once the "obvious" significant highs and lows are identified, it's simply a matter of making price projections based on symmetry and Fibonacci ratios to anticipate likely resistance prices for stocks trending higher.

Recommended

 Stephen Pierce's Fibonacci Secrets - a step by step blueprint to understanding the proper applications of Fibonacci to your trading. The course includes the Fibonacci Chart Book, the 4-point Fibonacci Trading Formula, Fibonacci tutorial videos (several hours), the Focus Point Fibonacci Trading method.

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