Stelco Holdings Inc T.STLC

Retracement from spike

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Stock price spiked from roughly 14 to 18 for $4 gain.  Fibonacci retracement would be 62 percent of gain which work out to $2.50. That puts new entry price at 15.50 which is 18 less 2.50.  Hard to explain why this works but in my experience does seem to work. Uptrend will be resuming from here. Don’t see recession on horizon. All time low unemployment low inflation and strong GDP growth. Stelco at 5 price earnings.