Mohamed Khedr CPM, CFTe, MFTA
Head of Technical Analysis Department
T: 20233005721
According to Newton's third law of physics, for every action, there is an equal and opposite reaction in magnitude and opposite in direction. As for technical analysis, the mathematician Leonardo Pisano, famous for Fibonacci, in the 13th century, identified a set of ratios, the most famous of which are 23%, 38.2%, 50%, 61.8%, and 100%. These ratios are used to measure potential correction or bouncing levels, which are connected through two points (from peak to trough and vice versa).
Therefore, we will focus on a group of stocks that have experienced a sharp decline and, according to technical analysis tools, may bounce in the medium or long term. We will use Fibonacci retracements to determine potential targets for this potential bounce (the counter target).
Read the full report below.
