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. |
| Prev. Co. | Next Co. | |
|
| ||
| 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. The red bar marks the price range corresponding to the current price of SNDK shares. |
| Prev. Co. | Next Co. | |
| ||
|
Blue bars depict the Volumetric Profile for various price levels of Sandisk. 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) $25 and $8. The strongest is near the $25 strata. |
| Support Level ID | Price Range | Peak Magnitude |
| 1 | $25.00 - $25.99 | 2.97 |
| 2 | $8.00 - $8.99 | 2.55 |
| At least two layers of turbulence might act as resistance levels above the current price, particularly the one near the $43 level. |
| Resistance Level ID | Price Range | Peak Magnitude |
| 1 | $43.00 - $43.99 | 1.84 |
| 2 | $57.00 - $57.99 | 1.30 |
| Prev. Co. | Next Co. | |
| ||
| 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 $18 and $12. The deepest is near the $18 strata. |
| Prev. Co. | Next Co. | |
| ||
| 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 SNDK Common Stock |
| Thursday, March 18, 2010: We have news on Mylan Inc., ticker symbol MYL. Signs of an over-bought condition have become noticable. Also, there are breaking events concerning Goldman Sachs Group, Inc. and MicroSoft. From the News Archive: (3/17/2010 ) Favorable events happened at ACM Income Fund and LoJack Corp. Meanwhile, bad news came from Prudential Financial, Inc. and Sempra Energy. |