Quote:
Originally Posted by Buehler445
That's not support. Support and resistance is based on historical prices that provide support and resistance.
In the example above (Green is support red is resistance) if a stock goes down to 33, you can, in theory, expect support and get a turnaround. If it blows through it, support becomes resistance and you'll have to have a pretty substantial move to get back above the price level.
I don't know the rules to actually exercise the technical analysis on any given stock, but in the grains, you can lean pretty hard on support and resistance. |
My mistake. I was looking at the graph on my phone and it looked like it bounced off $13.50 twice within the span of a few days in mid July. Not that two markers of support is great, but for a short term trade, it can be useful. It did not, however, so **** X stock still.
Carry on.