Metalico Stock Chart Shows Fibonacci Love

The latest technical craze that has been whispered in my ear is Metalico (MEA). It has experienced a massive run-up in June, but has since started to fall off a bit.

One of my favorite tools the Fibonacci retracement, allows us to correlate the current standing of a stock with the previous trend. You can see with Metalico that a near perfect Fibonacci setup is in the works.

From its original peak, the stock has come down to 62% and bounced. Now we are sitting right above the 38% level.

Lets see if Metalico will bounce up higher here or at the 50% level. A clear bounce should signal a buy, with initial price target of the retracement level above.

Check out a free trend analysis Metalico (MEA).