I do believe the indices overall are vulnerable to the downside, but I still have to look at each stock and trade setup individually. For example, GoPro (GPRO) has totally ignored recent declines, and there are some sectors that are stronger than others, for sure.
Today I want to look at Stratasys (SSYS), because the pattern of this stock is still bullish and I see a Fibonacci price cluster that will identify my risk if price continues to hold above this area.
The price support cluster includes the coincidence of at least six Fibonacci price relationships. There are key retracements (including 0.618 of one swing), extensions and projections in the area between $116.43-$119.12. We are currently testing this zone with the recent low being made at $119.07.
Besides the price support, I am also looking at a few Fibonacci time cycles that are coming due Sept. 26-Sept. 29. I like the fact that there are three other declines on this chart that are similar in time to some prior swings. They were six, seven and six days down. We are currently five days down from the recent high at Thursday's low.
I do find that many corrective declines will be similar to others on the same chart. As far as upside potential if this setup starts to play out, I have a bigger-picture target at the $152.46 area. I have some shorter term upside targets at $134.03 and $137.62-$138.67.
I will consider myself wrong the trade if this key price support zone is taken out by at least a buck. As usual, I recommend waiting for a trigger that tells you it's worth placing a bet against this key decision. For more information on trades and triggers, please refer to my explanatory guide.
