Technical Analysis of Financial Markets

Friday, June 13, 2008

Paragon Shipping Inc. (PRGN)

PRGN has retraced 61.8% of the rally since March lows. At this point, price action may find support with an expectation of a rebound. However, RSI is not completely and oversold, and oversold stochastics have not yet crossed over to indicate a buy signal. An entry into a buy position at this point may serve as a low-risk trade with a stop-loss placed below the 61.8% Fibonacci retracement level.

1 comment:

Mika said...

Be carefull with this chart, 61.8% retracement usually marks wave III ending impulse, meaning ther might be fifth wave to the same direction coming or wave 3 will get extended mode.

78.6% fibonacci target will likely come in the case there will be fully impulse and it´s certainly impulse with those candles.

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