Chapter VIII: Volume Stratification Analysis (or VSA) follows price behavior in relation to historical volumes of PFG 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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| 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 PFG stock is painted in red. |
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Blue bars depict the Volumetric Profile for various price levels of Principal Financial Group, Inc.. The thick orange line is the Volumetric Price and the maroon line is the Secular Price. The Volumetric average at $28 is below the Secular average at $34. This is a very un-usual condition. Two levels of volumetric turbulence underlie today's price. They are at (approximately) $24 and $8. The strongest is near the $24 strata. |
| Support Level ID | Price Range | Peak Magnitude |
| 1 | $24.00 - $24.99 | 6.87 |
| 2 | $8.00 - $8.99 | 1.48 |
| To the upside, a layer of potential resistance hovers around the $50 level. |
| Resistance Level ID | Price Range | Peak Magnitude |
| 1 | $50.00 - $50.99 | 1.16 |
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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 PFG 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 D.R. Horton, Inc.. From the News Archive: (2/18/2011 ) Favorable events happened at Robert Half International Inc. and Southwestern Energy Company. Meanwhile, bad news came from McCormick & Company, Incorporated and Reynolds American, Inc.. |