Re: LGND Support/Resistance
I'm certainly not trained in the technical area, so maybe you can explain why things are "a real sticking point".
I, for one, am glad you have focused your mind on real science, rather than pseudoscience! :-) For the record, I did not advocate 13.75 as a hard resistance level.
Go to your quote.com applet screen. In the symbol box, type LGND,90. Starting just before 17 November, notice all the bars that have a top or bottom at 14. Ten bars (with two minor penetrations) marked support right at 14. Then we fell below 14, and the next set of bars have most of their highs at 14. Apres, le deluge. LGND bottomed at 12.5, and the new uptrend finds itself right at 14.
Two guidelines of TA are important to note here:
1. Round numbers matter. That's why 14 is a better place for a decision point than 13.75.
2. Old support becomes new resistance (and vice versa). Once 14 failed on the downside, it became an important number on the upside.
Today's action confirms the importance of 14. I am not saying LGND will turn back here. Let Mr. Market tell us what will happen, based on the action at this level. I will consider a close over 14.25 (preferably with good volume) as an indication that the December trend is intact.
Pý |
