Fibonacci12 Sep 2020 10:25
Disclaimer 1 - I hold SNG share, but was not fortunate enough to buy at as good a price as many of you LTH here. It is in my interest for price to rise.
I have been doing some simple fibonacci calculations based on closing price. If we take the recent rise from 6p, then to 71p, back down to 33.5, etc to the closing high of 249p as Wave 1. A 50% retracement for wave 2 could see a closing price in the range of £1.50. This would coincide with a 1-to-1 extension (AB=CD) of the recent drop. It will also coincide with the last high at about £1.48 in Feb 2005.
For me, having some idea of where price might drop to before a rebounce is very useful.
If we have had Wave 1 (ending with a closing high of £2.49), and we are currently in Wave 2, then this is very good news indeed. So long as we can hang on past the pain of a further drop in price, Wave 3 and Wave 5 (extension waves) will take us way beyond £2.49. Anyone who is familiar with fibonacci charts will be aware that Wave 3 is never the shortest wave.
Disclaimer no.2 - I am not a fibonacci expert. :-)