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 is nothing more than the cummulative volume according to price range. The red bar marks the price range corresponding to the current price of COF shares. |
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Blue bars depict the Volumetric Profile for various price levels of Capital One Financial Corp.. The thick orange line is the Volumetric Price and the maroon line is the Secular Price. The Volumetric average at $39 is below the Secular average at $41. This is a very un-usual condition. A few layers of volumetric turbulence exist that could provide support on the downside. The most significant of these is found around $38. |
| Support Level ID | Price Range | Peak Magnitude |
| 1 | $38.00 - $38.99 | 3.52 |
| 2 | $28.00 - $28.99 | 1.98 |
| 3 | $11.00 - $11.99 | 1.46 |
| At least two layers of turbulence might act as resistance levels above the current price, particularly the one near the $70 level. |
| Resistance Level ID | Price Range | Peak Magnitude |
| 1 | $57.00 - $57.99 | 0.82 |
| 2 | $70.00 - $70.99 | 1.04 |
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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. Two sharply defined valleys exit below the priceline at $32 and $19. The deepest is near the $19 strata. |
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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 COF Common Stock |
| Friday, February 18, 2011: We have news on Fiserv, Inc., ticker symbol FISV. Signs of an over-bought condition have become noticable. Also, there are breaking events concerning Zimmer Holdings, Inc. and McCormick & Company, Incorporated. From the News Archive: (2/18/2011 ) Bad news came from Reynolds American, Inc., Dollar Tree, Inc., Zimmer Holdings, Inc., and NVIDIA Corp. |