If you have followed me trades for more than a day you know that I like to use Fibonacci retracements as one of the measurement tools for entry and profit targets. One of the stocks I have pointed this out repeatedly on over the past two months was F5 Networks (FFIV). After a large drop on January 20 the stock retraced 61.8% of that large move lower, which also coincided with the 50 day moving average as resistance; a great setup to go short. As profit targets I like to use the -23.6% Fibonacci level, which as you can see is exactly where the price moved to yesterday after briefly stalling at the 200 day moving average.
If these types of no-stress trades are of interest to you please visit our website at WWW.THESTEADYTRADER.COM
