Hi Freeus,..Re:. a chart that shows that at a certain price, when a stock is receding, it tends not to go below that, and when a stock is advancing it tends to stall at a certain price (resistance).
I agree that these are valid levels, but they are also dependent on the overall market action. In other words, if the market is going to tank like the first of Oct., then support can get taken out readily. One only has to read the Idea thread to see the value of using these levels when trading.
Excluding the internet stocks, and given generally positive market conditions, it looks like price oscillates between these levels rather regularly.
iqc.com
Sometimes it helps to monitor the underlying index as well. For instance, Dell made a new high when the NDX made a new high in July.
iqc.com
At any rate, there is correlation with the economic fundamentals and market indices. Besides, it's fun. <vbg>
Regards,
Lee |
