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 is nothing more than the cummulative volume according to price range. Here the price column corresponding to the current price of SUNW stock is painted in red. |
| Prev. Co. | Next Co. | |
| ||
|
Blue bars depict the Volumetric Profile for various price levels of Sun Microsystems. The thick orange line is the Volumetric Price and the maroon line is the Secular Price. The Volumetric average at $7 is below the Secular average at $8. This is a very un-usual condition. Almost no volumetric support exists underneath the current price. |
| Several minor strata of volumetric turbulence could exert resistance against price appreciation, most notably, the peak at $13. |
| Resistance Level ID | Price Range | Peak Magnitude |
| 1 | $13.00 - $13.99 | 1.15 |
| 2 | $31.00 - $31.99 | 0.19 |
| 3 | $45.00 - $45.99 | 0.23 |
| 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. No major Volumetric Minima exist to support the current price |
| 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 SUNW Common Stock |
| Friday, March 19, 2010: We have news on AT and T, ticker symbol T. A significant moving average event has happened. Also, there are breaking events concerning L-3 Communications Holdings, Inc. and Electronic Data Systems. From the News Archive: (3/18/2010 ) Bad news came from Mylan Inc., TECO Energy, Inc., MicroSoft, and Goldman Sachs Group, Inc.. |