US Major Markets: Support And Resistance

 

Support and Resistance

US Major Markets: Support And Resistance

The concepts of Support and Resistance are 2 of the most discussed attributes of technical analysis, they are often regarded as a subject that is complex by those who are just learning to trade.

Traders refer to price levels on charts that tend to act as barriers from preventing the price of an asset from getting pushed in a certain direction, either North or South.

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Most technical traders incorporate the power of various technical indicators, such as MAs (moving averages), to aid in predicting future short-term momentum. A MA is a constantly changing line that smooths out past price data while also allowing the trader to identify Support and Resistance.

The price of the asset (index, stock, commodity, bond) finds support at the MA when the trend is up, and how it acts as Resistance when the trend is down.

Most traders experiment with different time periods in their MA’s so that they can find the one that works best for this specific task, the most used are the 10-Day, 20-Day, 50-Day, and 200-Day MA’s for stocks.

DJIA close: 17,128.55

Resistance
17,152 the mid-Jul 2015 high
17,200 the 38% Fibo retrace mark
17,351 the Sept 2014 high.
The 50-Day EMA: 17,474
The 200-Day SMA: 17,547
17,715 the Jun 2015
17,748 an Apr 2015 low
17,978 the Nov 2015 high
18,120 the Jul 2015 high
18,351 the May 2015 all-time high

Support
17,068 a Jul 2014 high
17067 the Dec 2014 low
16,970 the Jun 2014 high
16,946 a Jun 2014 high
16,933 the Sept 2015 high
16,736 a May 2014 high
16,670 the Aug 2015 high

S&P 500 close: 2005.55

Resistance
2011 the Sept 2014 high
2040 the Mar 2015 low
2046 the Jul 2015 low
The 50-Day EMA: 2051
2062 a Jan 2015 high
The 200-Day SMA: 2062
2094 the Dec 2014 high
2104 the Dec 2015 high
2116 the Nov 2015 high
2120 the Feb 2015 high
2126 the Apr 2015 high
2130 the Jun 2015 high
2135 the May 2015 all-time high

Support
1995 the Sept 2015 high
1991 the Jul 2014 high
1989 the Aug 2015 high
1972 the Dec 2014 low
1913 a Sept 2015 low
1905 the Aug 2014 low
1902 the May 2015 all-time high

NAS Comp close: 4923.08

Resistance
The 200-Day SMA: 4977
4999 the Oct 2015 upper Gap mark
5009 a Mar 2015 high
The 50-Day EMA: 5009
5042 the March 2015 high
5100 a May 2015 high

Support
4916 a Nov 2015 low
4912 a Apr 2015 low
4902 the Jul 2015 low
4837 a Aug 2015 high
4815 the Dec 2014 high
4811 the Nov 2014 high
4751 a Jan 2015 high

Have a terrific week and a Happy Christmas

Paul Ebeling

Wast Brook Radio

 

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