Thursday, March 31, 2005
It is dangerous to catch a falling knife. You will get cut and bleed profusely. I am catching one : Ramunia. Ya, this stock has fall substantially. Seems that someone is pushing the price ever lower. I enter my trade at 0.885. The decision is based on 66% Fibonacci retracement level. I thought that was a good level as it was hovering at that level for some time. However, it suddenly dropped to as low as 0.84. The weird thing is that I didn't scare at all, just a little bit worried. With that type of selling, I don't think it will be sustained. Last minute push allows it to close at 0.875. According to my analysis, if rebound, then the target is at around 0.99 for 33% retracement. Hope my chart reading is correct.