I have recently fallen in love with MarketClub’s charts and how they work. While running through some of their “smart scans,” I came across Companhia Energetica Minas Gerais (CIG).
For much of the year, CIG has hit some great growth; however, it has come back down a little over the past couple of months.
By using the fibonacci tool on the recent uptrend, we can see the stock currently sits at its 68% retracement level (as seen in the chart above) at round $22 level. A bounce either way should dictate your trade.
A bounce upwards should indicate a price target of $26. If the stocks continues to head downwards, then we can look at potential break points at the other retracement levels (around $20.75 and $19.50).