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 FIS shares. |
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Blue bars depict the Volumetric Profile for various price levels of Fidelity National Information Services. 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. Two levels of volumetric turbulence underlie today's price. They are at (approximately) $23 and $20. The strongest is near the $20 strata. |
| Support Level ID | Price Range | Peak Magnitude |
| 1 | $23.00 - $23.99 | 4.34 |
| 2 | $20.00 - $20.99 | 5.01 |
| 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 $21 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 FIS Common Stock |
| Wednesday, July 28, 2010: We have news on W.W. Grainger, Inc., ticker symbol GWW. Signs of an over-bought condition have become noticable. Also, there are breaking events concerning Cummins Inc. and Quest Diagnostics Incorporated. From the News Archive: (7/27/2010 ) Favorable events happened at Lexmark International, Inc., Range Resources Corp., and Zimmer Holdings, Inc.. Meanwhile, bad news came from QUALCOMM, Inc.. |