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 WPO shares. |
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Blue bars depict the Volumetric Profile for various price levels of The Washington Post Company. The thick orange line is the Volumetric Price and the maroon line is the Secular Price. General Volumetric Health is 2 on a scale from 1 (best) to 3 (worst), because the price at $433 is below the Volumetric line at $453, indicating major problems. However, some support may still exist on either side of the $428 level. Two levels of volumetric turbulence underlie today's price. They are at (approximately) $430 and $160. The strongest is near the $430 strata. |
| Support Level ID | Price Range | Peak Magnitude |
| 1 | $430.00 - $430.99 | 4.08 |
| 2 | $160.00 - $160.99 | 3.20 |
| To the upside, a layer of potential resistance hovers around the $700 level. |
| Resistance Level ID | Price Range | Peak Magnitude |
| 1 | $700.00 - $700.99 | 1.98 |
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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 $250 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 WPO 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 McCormick & Company, Incorporated. From the News Archive: (2/18/2011 ) Bad news came from Reynolds American, Inc., Dollar Tree, Inc., Zimmer Holdings, Inc., and NVIDIA Corp. |