Old Resistance/New Support

Discussion in 'Technical Analysis' started by Bankedout, Mar 12, 2004.

  1. SMTS is one example I am watching. After a "breakout from base" I look for a pullback with lighter volume than the breakout and I also watch to see if that pullback is finding support at or above a prior resistance level.

    -Chart attached-

    Banker
     
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  2. gam1111

    gam1111

    What about the S & P 500 & Nasdaq. Does anyone think the indexes will find support soon?
     
  3. The Monthly chart for SMTS with the same concept shown.

    Banker
     
  4. dbphoenix

    dbphoenix

    What do you think?
     
  5. Yawn.
     
  6. I don't track the Nasdaq or the S&P 500. I do follow the Russell 2000. It wouldn't shock me to see a bounce here.

    Banker
     
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  7. Good to see you once again!
    How is my old power supply doing in your Dell Computer?

    By the way, I think that the NDX had a key level broken at 1420-1422. It will be interesting to see if we can close about it for the weekly, today.

    Meanwhile, the S&P bounced off the 89 day moving average, which came through at yesterday's close.

    However, the 38.2% retracement of this recent rally in the S&P gives one an eventual target of 1096.

    Stay nimble!
     
  8. Your old power supply is doing just fine, thank you! It's powering this message.... Another dose of Winter here in Wisconsin. The cold spells are getting weaker and weaker though. Good riddens!

    Like I said, I don't follow the Naz or the S&P. I'm trading mostly small cap stocks now.

    Good trading to you,

    Banker
     
  9. The Monthly chart of the Russell 2000 leaves me with little faith in the bull market continuing from here. We are back at the old highs, and this leg up seems historically long. Of course just looking at individual stock charts shows the massive distribution going on and some have even started the mark down phase. What do the day traders care though?

    Banker
     

  10. +============================


    Gam111;

    Yes, support soon;
    like today near close.:cool:

    DIA, SPY, QQQ made higher lows & higher closes today;
    more conservative traders may wait for higher highs also & or close above 50 day moving average.

    Its worth repeating ALL the above COMBINED makes for a higher probability trade;
    volume on those is nice ,confirming above average buy volume.

    :cool:
     
    #10     Mar 12, 2004