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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: CusterInvestor who wrote (104314)	7/2/2008 5:14:34 PM
From: chowder	Read Replies (2) \| Respond to of 206317

Re: SU ... >>> does the downside volume today influence your decision to buy on this drop-off? <<< Last week when I provided my analysis of SU, I think I stated that odds of a reversal increased if price would come down and test the price support range I had drawn on the chart at that time. That chart and analysis are listed below. Some people like to "anticipate" their price entries. I don't! For those who like to anticipate their entries, this is where you would want to do it, simply because this is the logical point where the odds are greater that we will see some buying support. What we don't know, at this time, is whether we would be catching a falling knife or not. That's why I don't anticipate entry points. I wait for confirmation. I wait for upside price movement. My buying point would be if price can reverse and trade above this week's high of the week. To me, that's the nearest resistance point. I like to see immediate resistance taken out before entering a trade. I can't tell you how many times that has saved me from catching those proverbial falling knives. However, for those who do like to anticipate price reversals, you want to do it where you can "reasonably" expect price support, and the odds of price support are greater as price approaches the 40 week (which is a 200 day) moving average in this case because of the amount of buying that took place in this price range, noted in yellow in the chart below.