I made a comment this week about how most charts look like the Loch Ness Monster. Many of you understood what that meant, but some wanted more clarity on just what the heck I was saying. So without further ado, I bring you a Weekly chart of $ZAGG showing the up and down movement of price – the zig and zag that price takes:
To help show some boundaries for the zig and zag, I have put on the Fibonacci levels for the March 2011 bounce to the August 2011 high and retrace to late December 2011. The low in March 2011 was $6.23 and the high in August 2011 was $17.10. The retracement to the low in December 2011 hit a low of $6.40 – coming up $.17 cents short for a full retracement of the move.
Price has since started a recovery and this past week broke up through the 50% retracement of this Fibonacci range. The next target above is at $13.00.