Chapter VIII: A sophisticated method associates price levels with historical volumes. Such semi-abstract concepts as Support and Resistance may then be defined with mathematical precision. |
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| The Volumetric Profile is the central concept behind Volume Stratification Analysis. This Profile is simply the cumulative volume over the history of the stock, distributed according to price range. The red bar marks the price range corresponding to the current price of ADP shares. |
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Blue bars depict the Volumetric Profile for various price levels of Automatic Data Processing. The thick orange line is the Volumetric Price and the maroon line is the Secular Price. General Volumetric Health is 1 on a scale from 1 (best) to 3 (worst), because the price is above the Volumetric line, indicating some positive market sentiment. The only significant volumetric support exists in the area around the $35 level. |
| Support Level ID | Price Range | Peak Magnitude |
| 1 | $35.00 - $35.99 | 4.92 |
| Looking above today's price, there no significant resistance level to act as a ceiling on upward movement. |
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| Horizontal maroon lines indicate Negative Volumetric Peaks. Price intervals with these characteristics are often associated with gaps, although they sometimes operate as support levels. Quarterly and yearly turn-arounds are circled. Only one volumetric minima (valley) is to be found near the $20 level. |
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| Here, the horizontal lines mark the points of Maximum Negative Slope in the Volumetric Profile. These strata are known to act as resistance levels against upward movement, and are sometimes associated with yearly and quarterly tops. Also, as is typical of resistance levels, they may do double duty as support, but that is not the typical case. |
For Members: Deeper Analysis, with Price Predictions for ADP Common Stock |
| Thursday, March 11, 2010: We have news on Zimmer Holdings, Inc., ticker symbol ZMH. A favorable momentum event has happened. Also, there are breaking events concerning Zimmer Holdings, Inc. and American International Group, Inc.. From the News Archive: (3/10/2010 ) Bad news came from Carnival Corporation, Vulcan Materials Company, Juniper Networks, Inc., and PNC Financial Services. |