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 is nothing more than the cummulative volume according to price range. The red bar marks the price range corresponding to the current price of ENI shares. |
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Blue bars depict the Volumetric Profile for various price levels of Enersis S.A.. The thick orange line is the Volumetric Price and the maroon line is the Secular Price. The Volumetric average at $13 is below the Secular average at $14. 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 $6. |
| Support Level ID | Price Range | Peak Magnitude |
| 1 | $18.00 - $18.99 | 3.88 |
| 2 | $10.00 - $10.99 | 2.29 |
| 3 | $6.00 - $6.99 | 4.29 |
| To the upside, a layer of potential resistance hovers around the $28 level. |
| Resistance Level ID | Price Range | Peak Magnitude |
| 1 | $28.00 - $28.99 | 0.18 |
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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 $20 and $8. The deepest is near the $8 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 ENI Common Stock |
| Wednesday, March 17, 2010: We have news on CIGNA Corporation, ticker symbol CI. Signs of an over-bought condition have become noticable. Also, there are breaking events concerning Prudential Financial, Inc. and Patterson Companies, Inc.. From the News Archive: (3/17/2010 ) Favorable events happened at LoJack Corp and Harley-Davidson, Inc.. Meanwhile, bad news came from General Electric and Nucor Corporation. |