Yageo weekly 0.618 retracement--The passive components' drama.The sector of passive components in Taiwanese Stock Market went so crazy since last year.
This Yageo is the leading one to make a perfect turnaround from a 2 digits stock to the 2nd highest price stock in Taiwan (called Queen of the stock market) .
The story started from the passive components went short in supply and the price kept going higher and higher,
so higher revenue, higher earning estimate, and a higher multiple is given as most analysts believe the supply will be in short for quite a while.
While after it reached 1,000 fig, pretty much similar with all those chase high stories we've heard,
people went crazy on buying and day-trading the stock with a view that it could go to 1,200 , 1,500, 1,700 and even higher,
that's when the reversal started to take place.
Now, it already dropped about 40% from its peak, and our dear friend Fibonacci is happy to see that.
About 450-500 will be the spot that the demand zone and the 0.618 retracement having combination,
which will also be the spot that I'll be interesting in trying to long this name.
Let's see how it goes!
