Today we have a weekly chart of Munjal Auto.
This chart is an awesome example of bullish .618 retracement, the stock continued taking its support every it falls from the higher levels, as you can see it tested this retracement for about 4 times hence confirming a great demand zone.
From early August, 2013 stock started rallying from 26.2 level and its amazingly rallied over 441% in just 15months.
After marking a high at 134 level in early November 2014, stock started selling -off and found support near 66.59 which is the .618 Fibonacci retracement of its massive rally from 26.2 to 134 levels
Initially, the stock immediately reversed after testing this support, however, unable to see follow up and this way tested this support approx 4 times.
However, the amazing part the stock witnessed that it wasn't ready to give up this support and was respecting it every time it came near it, this stock clearly dictates the relevance and importance of Fibonacci .618 retracement.
This time stock clearly shows the reversal off the .618 retracement by rallying aggressively in one direction. It may be a signal of continuation of a new uptrend.
However follow- up move is necessary to see it testing previous highs and making new highs as well.
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