Chapter VIII: Volume Stratification Analysis (or VSA) follows price behavior in relation to historical volumes of JDSU stock sales. Knowledge of these behaviors gives us a quantitative metric useful for understanding Support or Resistance Levels, and predicting their strength. |
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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 JDSU shares. |
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Blue bars depict the Volumetric Profile for various price levels of JDS Uniphase Corporation. The thick orange line is the Volumetric Price and the maroon line is the Secular Price. General Volumetric Health is 3 on a scale from 1 (best) to 3 (worst), because the price at $17 is below both the Volumetric and the Secular lines, indicating an issue that has entirely lost reputation in the market. Almost no volumetric support exists underneath the current price. |
| To the upside, a layer of potential resistance hovers around the $750 level. |
| Resistance Level ID | Price Range | Peak Magnitude |
| 1 | $750.00 - $750.99 | 0.52 |
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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. No major Volumetric Minima exist to support the current price |
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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 JDSU Common Stock |
| In the news, Friday, February 18, 2011: An unfavorable condition has developed with Aetna Inc., ticker symbol AET. Also, there are breaking events concerning Dollar Tree, Inc. (DLTR) and First Niagara Financial Group Inc. (FNFG) |