Are you a gambling man? Fibonacci retracements use horizontal lines to indicate areas of support or resistance at the key Fibonacci levels. These levels are created by drawing a trendline between two extreme points and then dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%, which are derived from the “Golden Ratios.”
For this chart we consider the valley (low) of $88, which if you’ll recall coincided with the apprehension of Ross Ulbricht in September of last year. The peak (high) is drawn at $1163, from late November ’13.
So what do you think? Will Leonardo Fibonacci, an Italian born in 1175 AD, who discovered the unusual properties of the numerical series (Fibonacci sequence) provide us some much needed support at $319? We’ll all know soon enough.