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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| Volume Stratification Analysis begins with the concept of the Volumetric Profile. This Profile is simply the cumulative volume over the history of the stock, distributed according to price range. Here the price column corresponding to the current price of CMA stock is painted in red. |
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Blue bars depict the Volumetric Profile for various price levels of Comerica Incorporated. 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. A few layers of volumetric turbulence exist that could provide support on the downside. The most significant of these is found around $35. |
| Support Level ID | Price Range | Peak Magnitude |
| 1 | $35.00 - $35.99 | 3.69 |
| 2 | $29.00 - $29.99 | 3.26 |
| 3 | $20.00 - $20.99 | 3.10 |
| 4 | $8.00 - $8.99 | 3.53 |
| To the upside, a layer of potential resistance hovers around the $47 level. |
| Resistance Level ID | Price Range | Peak Magnitude |
| 1 | $47.00 - $47.99 | 2.88 |
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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. $11 is the most significant of several valleys (i.e. negative peaks) in today's profile underneath the current price for CMA. |
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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 CMA Common Stock |
| In the news, Wednesday, March 10, 2010: An unfavorable condition has developed with Valero Energy Corporation, ticker symbol VLO. Also, there are breaking events concerning Vulcan Materials Company (VMC) and XTO Energy Inc. (XTO) |