CIEN Watch

Ciena Corp. (CIEN) is in its third day of trading within a range, bounded by two lines in a Fibonacci grid that measures downwrd retracement of the rise from $10.53 on Dec. 18, 2009 to $19.48 on May 3, 2010.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
CIEN $16.81

At 3:20 p.m. Eastern

The stock is trading between the 23.6% line at $17.37 on the high side and the 38.2% retracement at $16.06 on the low side.

Those levels count as an extremely shallow retracement. In the normal course of things stocks move down to at least the 50% retracement level, at $15.01 on this chart, or even 61.8%, or $13.95.

However, there is no rule requiring that deep a pullback, and CIEN could just as well meander sideways for awhile before resuming the uptrend.

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Martin Pring's detailed deconstruction of the economic cycle: What sorts stocks to look for at each stage of the recovery. A masterful analysis.

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Skynet Panic of May 6
Panic Looks Like This
Skynet Panic Poisons Technical Tools

Abbreviations:
psar - Parabolic Stop and Reverse
adx - Average Directional Index
pps - Person's Proprietary Signal
ma20 - 20-day moving average
macd - Moving Average Convergence-Divergence
mfi - Money Flow Index
sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.

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