A "Royal" Fibonacci Setup In DIA

Carolyn Boroden and Tammy Marshall, co-hosts of the Fibonacci Markets & Stocks service, shared some of their highlights this week.

Carolyn highlighted a good example of what she likes to call a "Royal Setup" in the DIA.

"The price cluster of support came in at the 486.72-487.07 area, which included a .236 and 50% retracement along with a 1.618 extension of a prior minor swing.  We ended up putting in a low directly within this zone at the 487.00 level.  So when we hit the zone we always go down to a lower time frame chart for a buy trigger.... 1-5 min for day trade entries or 15-30 min for swing trade entries.  So far we have seen a rally of $12.93 off that key zone. The initial upside target is 501.48 but since we don't ALWAYS meet our targets we will trail up stops as we go!"

Tammy highlighted a setup in COCO with Fibonacci defined risk price support at 46-47 correlating with the 200SMA.  "It met our first target at 65 and is approaching the second target at 71."

View both charts below.