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Farooq,
A Support & Resistance Report alert is based on either an area of concentrated Support (Buy Alert) or concentrated Resistance (Sell Alert). It, therefore, invariably represents a pivotal area on a chart.
There are often times when an area of concentrated Support eventually fails. In those cases, however, because it represetns a pivotal area on the chart, failed Support becomes a sell signal.
RIMM Buy Alert...
Did you buy RIMM at the right price today?
http://support-resistance-report.com/AlertRIMMgs.html
RIMM Buy Alert...
Did you buy RIMM at the right price today?
http://support-resistance-report.com/AlertRIMMgs.html
QQQQ - Tuesday's 5-Minute Chart...
The QQQQ delivered a narrow 27-cent trading range on Tuesday ahead of Intel's after-hours earnings report.
Tuesday's 5-Minute Chart (below) shows a sluggish day in which the QQQQ tested neither Gathering Support below nor Gathering Resistance above.
On Wednesday, the QQQQ will trade initially based on the 8:30am (EST) Producer Price Index (PPI) Report. The PPI is a measurement of inflation at the wholesale level and, therefore, is always a market mover.
Later in the day, the QQQQ will trade based on the 2:00pm (EST) Beige Book Report. The Beige Book is published by the Fed and is scanned for hints on what the Fed plans to do with interest rates at its next meeting.
Buy at Gathering Support ... Sell at Gathering Resistance.
Each day's area of Gathering Support and Gathering Resistance is calculated the night before (Wednesday's areas are slightly different from the areas shown below that applied to Tuesday's trade):
QQQQ - Tuesday's 5-Minute Chart...
The QQQQ delivered a narrow 27-cent trading range on Tuesday ahead of Intel's after-hours earnings report.
Tuesday's 5-Minute Chart (below) shows a sluggish day in which the QQQQ tested neither Gathering Support below nor Gathering Resistance above.
On Wednesday, the QQQQ will trade initially based on the 8:30am (EST) Producer Price Index (PPI) Report. The PPI is a measurement of inflation at the wholesale level and, therefore, is always a market mover.
Later in the day, the QQQQ will trade based on the 2:00pm (EST) Beige Book Report. The Beige Book is published by the Fed and is scanned for hints on what the Fed plans to do with interest rates at its next meeting.
Buy at Gathering Support ... Sell at Gathering Resistance.
Each day's area of Gathering Support and Gathering Resistance is calculated the night before (Wednesday's areas are slightly different from the areas shown below that applied to Tuesday's trade):
QQQQ - Support & Resistance Areas...
Consistently Successful Traders ...
... buy at areas of Gathering Support (the purple areas below the previous day's closing price)
... and sell at areas of Gathering Resistance (the purple areas above the previous day's closing price)
... Knowing where these areas are located helps them to determine when to buy and when to sell.
The following Support & Resistance Report for the QQQQ applies to Tuesday's trade (01/16/07).
The previous day's Closing Price of $45.31 is labeled "CL"):
QQQQ - Support & Resistance Areas...
Consistently Successful Traders ...
... buy at areas of Gathering Support (the purple areas below the previous day's closing price)
... and sell at areas of Gathering Resistance (the purple areas above the previous day's closing price)
... Knowing where these areas are located helps them to determine when to buy and when to sell.
The following Support & Resistance Report for the QQQQ applies to Tuesday's trade (01/16/07).
The previous day's Closing Price of $45.31 is labeled "CL"):
Buy at Gathering Support ... Sell at Gathering Resistance
Consistently Successful Traders buy at areas of Gathering Support and sell at areas of Gathering Resistance. Knowing where these areas are located helps them to determine when to buy and when to sell.
Each day's area of Gathering Support and Gathering Resistance is calculated the night before:
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Buy at Gathering Support ... Sell at Gathering Resistance
Consistently Successful Traders buy at areas of Gathering Support and sell at areas of Gathering Resistance. Knowing where these areas are located helps them to determine when to buy and when to sell.
Each day's area of Gathering Support and Gathering Resistance is calculated the night before:
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The Many Aspects of Support & Resistance...
A wide variety of individual aspects of Support & Resistance are in common use by traders today.
I use the following list of individual aspects of Support & Resistance in my work.
When two or more individual aspects of Support or Resistance coincide (reside within 10 cents of one another) in order to form an area of concentrated Support or concentraded Resistance, it is then that I sit up and take notice.
That's because two or more individual aspects of Support or Resistance that coincide create a much more reliable trading opportunity than does an individual aspect of Support or Resistance that is standing alone.
The following 5-Minute Charts provide a visual representation of how the QQQQ honored its areas of concentrated Support and concentrated Resistance in recent days:
Individual Aspects of Support & Resistance:
From a Daily Chart:
20-Day Moving Average
50-Day Moving Average
200-Day Moving Average
Upper Bollinger Band
Lower Bolling Band
Daily High
Daily Low
Daily Close
Daily Pivot Points (S2, Pivot, R2)
Fibonacci Numbers
From a Weekly Chart:
20-Week Moving Average
50-Week Moving Average
Upper Bollinger Band
Lower Bolling Band
Weekly High
Weekly Low
Weekly Close
Weekly Pivot Points (wS2, wPivot, wR2)
10-Week Trading Band
From a Monthly Chart:
20-Month Moving Average
Upper Bollinger Band
Lower Bolling Band
Monthly High
Monthly Low
Monthly Close
Monthly Pivot Points (mS2, mPivot, mR2)
From a 'Point & Figure' Chart:
Double-Top Breakout (D-Top)
Double-Bottom Breakdown (D-Bot
Triple-Top Breakout (T-Top)
Triple-Bottom Breakdown (T-Bot)
Bullish Support Line (BSL)
Bearish Resistance Line (BRL)
AAPL - Sell Alert / Buy Alert...
Sell at Gathering Resistance ...
Buy at Gathering Support...
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AAPL - Sell Alert / Buy Alert...
http://support-resistance-report.com/AlertAAPLgr.html
AAPL - Sell Alert / Buy Alert...
http://support-resistance-report.com/AlertAAPLgr.html
QQQQ - Friday's 5-Minute Chart...
Buy at Gathering Support ... Sell at Gathering Resistance.
Each day's area of Gathering Support and Gathering Resistance is calculated the night before:
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QQQQ - Friday's 5-Minute Chart...
Buy at Gathering Support ... Sell at Gathering Resistance.
Each day's area of Gathering Support and Gathering Resistance is calculated the night before:
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QQQQ - Thursday's 5-Minute Chart...
The QQQQ spent Thursday trapped between Gathering Support in the vicinity of $43.00 and Resistance in the vicinity of its 50-Day Moving Average.
Thursday's 5-Minute Chart (below) shows the QQQQ bouncing between Support and Resistance as mentioned above.
Friday represents the QQQQ's last chance in 2006 to recapture Resistance at its 50-Day Moving Average. The 50-Day stands at $43.38 going into Friday's trade.
The QQQQ must recapture and hold Resistance at its 50-Day Moving Average in order to regain a clean bill of health for the intermediate-term (the weeks and months to come).
Each day's area of Gathering Support and Gathering Resistance is calculated the night before:
QQQQ - Thursday's 5-Minute Chart...
The QQQQ spent Thursday trapped between Gathering Support in the vicinity of $43.00 and Resistance in the vicinity of its 50-Day Moving Average.
Thursday's 5-Minute Chart (below) shows the QQQQ bouncing between Support and Resistance as mentioned above.
Friday represents the QQQQ's last chance in 2006 to recapture Resistance at its 50-Day Moving Average. The 50-Day stands at $43.38 going into Friday's trade.
The QQQQ must recapture and hold Resistance at its 50-Day Moving Average in order to regain a clean bill of health for the intermediate-term (the weeks and months to come).
Each day's area of Gathering Support and Gathering Resistance is calculated the night before:
QQQQ - Wednesday's 5-Minute Chart...
Having found Support at Tuesday's area of Gathering Support, the QQQQ rose to test Wednesday's area of Gathering Resistance.
Wednesday's 5-Minute Chart (below) shows the QQQQ pulling back from Gathering Resistance in early trade in order to fill the morning gap. After filling the gap, the QQQQ mounted a second challenge to Gathering Resistance and closed within its boundaries.
When an important aspect of Support is violated (like the 50-Day Moving Average has been), a stock will often return to the former aspect of Support in order to test Resistance there (Support, when violated by a falling price, becomes Resistance). That's what the QQQQ did on Wednesday.
On Thursday, the QQQQ is poised to give Resistance at its 50-Day Moving Average another test.
The QQQQ must capture and hold its 50-Day Moving Average in order to regain a clean bill of health for the intermediate-term (the weeks and months to come).
The area above a 50-Day Moving Average is often regarded as 'buy all dips' territory while the area below a 50-Day Moving Average is regarded as 'sell all rallies' territory.
Each day's area of Gathering Support and Gathering Resistance is calculated the night before:
QQQQ - Wednesday's 5-Minute Chart...
Having found Support at Tuesday's area of Gathering Support, the QQQQ rose to test Wednesday's area of Gathering Resistance.
Wednesday's 5-Minute Chart (below) shows the QQQQ pulling back from Gathering Resistance in early trade in order to fill the morning gap. After filling the gap, the QQQQ mounted a second challenge to Gathering Resistance and closed within its boundaries.
When an important aspect of Support is violated (like the 50-Day Moving Average has been), a stock will often return to the former aspect of Support in order to test Resistance there (Support, when violated by a falling price, becomes Resistance). That's what the QQQQ did on Wednesday.
On Thursday, the QQQQ is poised to give Resistance at its 50-Day Moving Average another test.
The QQQQ must capture and hold its 50-Day Moving Average in order to regain a clean bill of health for the intermediate-term (the weeks and months to come).
The area above a 50-Day Moving Average is often regarded as 'buy all dips' territory while the area below a 50-Day Moving Average is regarded as 'sell all rallies' territory.
Each day's area of Gathering Support and Gathering Resistance is calculated the night before:
QQQQ - Friday's 5-Minute Chart (12/22/06)...
The QQQQ closed below Support at its 50-Day Moving Average on Friday.
Just as a close above the 50-Day Moving Average constituted an intermediate-term "Buy" Signal last August, Friday's close below the 50-Day Moving Average may now constitute an intermediate-term "Sell" Signal (an intermediate-term signal can last anywhere from weeks to months, as did the "Buy" Signal of last August).
Friday's 5-Minute Chart (below) shows the QQQQ bouncing sharply from its initial visit to Gathering Support only to find Resistance at the violated 50-Day Moving Average and then bouncing again, more modestly this time, in the afternoon.
On Tuesday, with failed Support at the 50-Day Moving Average ($43.33), all eyes will be on potential Support in the vicinity of $43.00.
The $43.00 mark is important because it represents a combination of the Spring Peak (see the Weekly Chart) and the middle of the 10-Week Trading Band labeled 10wtb50 on the spreadsheet)...
1) In chart work, former peaks (such as the Spring Peak at $43.00) often serve as Support on the way back down.
2) The middle of a 10-Week Trading Band ($43.00) represents a neutral price for the previous 10 week period and also often serves as Support on the way back down.
If, therefore, Support at $43.00 fails, it would be viewed as evidence, in addition to failed Support at the 50-Day Moving Average, that the intermediate term picture for the QQQQ is weakening.
QQQQ - Friday's 5-Minute Chart (12/22/06)...
The QQQQ closed below Support at its 50-Day Moving Average on Friday.
Just as a close above the 50-Day Moving Average constituted an intermediate-term "Buy" Signal last August, Friday's close below the 50-Day Moving Average may now constitute an intermediate-term "Sell" Signal (an intermediate-term signal can last anywhere from weeks to months, as did the "Buy" Signal of last August).
Friday's 5-Minute Chart (below) shows the QQQQ bouncing sharply from its initial visit to Gathering Support only to find Resistance at the violated 50-Day Moving Average and then bouncing again, more modestly this time, in the afternoon.
On Tuesday, with failed Support at the 50-Day Moving Average ($43.33), all eyes will be on potential Support in the vicinity of $43.00.
The $43.00 mark is important because it represents a combination of the Spring Peak (see the Weekly Chart) and the middle of the 10-Week Trading Band (labeled 10wtb50 on the spreadsheet)...
1) In chart work, former peaks (such as the Spring Peak at $43.00) often serve as Support on the way back down.
2) The middle of a 10-Week Trading Band ($43.00) represents a neutral price for the previous 10 week period and also often serves as Support on the way back down.
If, therefore, Support at $43.00 fails, it would be viewed as evidence, in addition to failed Support at the 50-Day Moving Average, that the intermediate term picture for the QQQQ is weakening.
QQQQ - Friday's 5-Minute Chart...
The QQQQ gapped up at the open on Friday in positive reaction to the 8:30am Consumer Price Index (CPI) Report that showed inflation at the consumer level remains tame.
Friday's 5-Minute Chart (below) shows the QQQQ open at $44.76, one cent below Friday's area of Gathering Resistance. Resistance was found at that point and $44.76 proved to be Friday's high.
On Monday, the QQQQ remains at the upper end of its recent trading range, the high of which is the high of 2006 ($44.86).
The first Economic Report of note for the week will arrive at 8:30am on Tuesday. It's the Producer Price Index (PPI) Report.
The monthly PPI is a measurement of inflation that manufacturer's of goods are experiencing. It is, therefore, a close relative to last Friday's CPI Report and, like the CPI, is ordinarily a market mover.
QQQQ - Friday's 5-Minute Chart...
The QQQQ gapped up at the open on Friday in positive reaction to the 8:30am Consumer Price Index (CPI) Report that showed inflation at the consumer level remains tame.
Friday's 5-Minute Chart (below) shows the QQQQ open at $44.76, one cent below Friday's area of Gathering Resistance. Resistance was found at that point and $44.76 proved to be Friday's high.
On Monday, the QQQQ remains at the upper end of its recent trading range, the high of which is the high of 2006 ($44.86).
The first Economic Report of note for the week will arrive at 8:30am on Tuesday. It's the Producer Price Index (PPI) Report.
The monthly PPI is a measurement of inflation that manufacturer's of goods are experiencing. It is, therefore, a close relative to last Friday's CPI Report and, like the CPI, is ordinarily a market mover.
QQQQ - Wednesday's 5-Minute Chart...
The QQQQ gapped up on Wednesday's open to test Resistance at Tuesday's High ($44.13). After printing a high of $44.11, Resistance was found.
Wednesday's 5-Minute Chart (below) shows the QQQQ hovering just above Gathering Support for the second day in a row.
On Thursday, the best thing that traders can do is remind themselves that it's 'Options Expiration' Thursday...often a volatile day in which anything can happen.
Gathering Support for Thursday stands between $43.38 and $43.50.
If that area of Support fails, another important area of Support stands at $43.00 and is provided by a combination of the 50-Day Moving Average ($43.02) and the Spring Peak ($43.00).
QQQQ - Wednesday's 5-Minute Chart...
The QQQQ gapped up on Wednesday's open to test Resistance at Tuesday's High ($44.13). After printing a high of $44.11, Resistance was found.
Wednesday's 5-Minute Chart (below) shows the QQQQ hovering just above Gathering Support for the second day in a row.
On Thursday, the best thing that traders can do is remind themselves that it's 'Options Expiration' Thursday...often a volatile day in which anything can happen.
Gathering Support for Thursday stands between $43.38 and $43.50.
If that area of Support fails, another important area of Support stands at $43.00 and is provided by a combination of the 50-Day Moving Average ($43.02) and the Spring Peak ($43.00).
Hi michael,
It's hard to predict, of course. All I know is that there are 3 individual aspects of Resistance residing between $44.10 and Resistance at last week's high ($44.55) beginning with yesterday's high of $44.13.
QQQQ - Tuesday's 5-Minute Chart...
The QQQQ remains in a sideways consolidation from its 2006 High ($44.86). After two up days, Tuesday's action was to the downside.
Tuesday's 5-Minute Chart (below) shows the QQQQ performing the up-and-down gyrations that customarily follow a 2:15pm (EST) interest rate announcement.
On Wednesday, further downside in the QQQQ will find it testing a 3-member area of Gathering Support between $43.47 and $43.50.
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QQQQ - Tuesday's 5-Minute Chart...
The QQQQ remains in a sideways consolidation from its 2006 High ($44.86). After two up days, Tuesday's action was to the downside.
Tuesday's 5-Minute Chart (below) shows the QQQQ performing the up-and-down gyrations that customarily follow a 2:15pm (EST) interest rate announcement.
On Wednesday, further downside in the QQQQ will find it testing a 3-member area of Gathering Support between $43.47 and $43.50.
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Hi lowtrade,
Thanks for warm Welcome.
I both day trade and swing trade based on areas of Gathering Support (Buy Alerts) and Gathering Resistance (Sell Alerts).
My swing trades are defined as a trip from Gathering Support to Gathering Resistance or vise versa.
That definition ordinarily results in a short-term swing trade (a matter of days) as opposed to a long-term swing trade (a matter of weeks or months).
QQQQ - Friday's 5-Minute Chart...
The QQQQ demonstrated on Friday that dip buyers are alive and well, ready to step up to the plate whenever a piece of good economic news arrives. In this case, the good news came in the form of a better than expected Employment Report.
Friday's 5-Minute Chart shows the QQQQ recovering from a bout of profit taking that began on Thursday.
On Monday, the QQQQ will pick up where it left off, bouncing up and down within the context of a trading range, the upper end of which is the high of 2006 ($44.86), the lower end of which, so far, is Support in the vicinity of the Spring peak ($43.00).
The main economic event of the week will be Tuesday's FOMC Meeting. The Fed's decision on interest rates will be released at the usual time, 2:15pm and will likely be a market mover.
QQQQ - Friday's 5-Minute Chart...
The QQQQ demonstrated on Friday that dip buyers are alive and well, ready to step up to the plate whenever a piece of good economic news arrives. In this case, the good news came in the form of a better than expected Employment Report.
Friday's 5-Minute Chart shows the QQQQ recovering from a bout of profit taking that began on Thursday.
On Monday, the QQQQ will pick up where it left off, bouncing up and down within the context of a trading range, the upper end of which is the high of 2006 ($44.86), the lower end of which, so far, is Support in the vicinity of the Spring peak ($43.00).
The main economic event of the week will be Tuesday's FOMC Meeting. The Fed's decision on interest rates will be released at the usual time, 2:15pm and will likely be a market mover.
BBBY - Thursday's Sell Alert ... Friday's Buy Alert
Consistently Successful Traders buy at areas of Gathering Support and sell at areas of Gathering Resistance. Knowing where these areas are located helps them to determine when to buy and when to sell.
Thursday's Sell Alert:
http://support-resistance-report.com/AlertBBBYgr.html
Friday's Buy Alert:
http://support-resistance-report.com/AlertBBBYgs.html
QQQQ - Thursday's 5-Minute Chart...
The QQQQ opened on a positive note on Thursday, but then gave way to some heavy volumed selling.
Thursday's 5-Minute Chart (below) shows the QQQQ delivering what is often crudely referred to as a "gap and crap" day. It also shows how a wider than usual area of Gathering Support served as such until 3:00pm at which time Support was violated altogether, perhaps in reaction to the 3:00pm Consumer Credit Report.
On Friday, the QQQQ will trade based on the 8:30am Employment Report.
This much anticipated report will likely be a market mover that determines whether the QQQQ recovers from Thursday's pull back or continues down to test Support at last week's low ($43.26).
QQQQ - Thursday's 5-Minute Chart...
The QQQQ opened on a positive note on Thursday, but then gave way to some heavy volumed selling.
Thursday's 5-Minute Chart (below) shows the QQQQ delivering what is often crudely referred to as a "gap and crap" day. It also shows how a wider than usual area of Gathering Support served as such until 3:00pm at which time Support was violated altogether, perhaps in reaction to the 3:00pm Consumer Credit Report.
On Friday, the QQQQ will trade based on the 8:30am Employment Report.
This much anticipated report will likely be a market mover that determines whether the QQQQ recovers from Thursday's pull back or continues down to test Support at last week's low ($43.26).
AMGN - Wednesday's Sell Alert ... Thursday's Buy Alert
Consistently Successful Traders buy at areas of Gathering Support and sell at areas of Gathering Resistance. Knowing where these areas are located helps them to determine when to buy and when to sell.
Note: Each day's area of Gathering Support and Gathering Resistance is calculated the night before.
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AMGN - Wednesday's Sell Alert ... Thursday's Buy Alert
Consistently Successful Traders buy at areas of Gathering Support and sell at areas of Gathering Resistance. Knowing where these areas are located helps them to determine when to buy and when to sell.
Note: Each day's area of Gathering Support and Gathering Resistance is calculated the night before.
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It's better to buy at Support than at Resistance:
The Support & Resistance Report identified the following areas of Gathering Support (Buy Alerts) going into Wednesday's trade.
Wednesday's Buy Alerts were emailed to Support & Resistance Report subscribers on Tuesday evening:
BRCM Buy Alert:
http://support-resistance-report.com/AlertBRCMgs.html
SMH Buy Alert:
http://support-resistance-report.com/AlertSMHgs.html
IMCL Sell Alert:
http://support-resistance-report.com/AlertIMCLgr.html
It's better to buy at Support than at Resistance:
The Support & Resistance Report identified the following areas of Gathering Support (Buy Alerts) going into Wednesday's trade.
Wednesday's Buy Alerts were emailed to Support & Resistance Report subscribers on Tuesday evening:
BRCM Buy Alert:
http://support-resistance-report.com/AlertBRCMgs.html
SMH Buy Alert:
http://support-resistance-report.com/AlertSMHgs.html
IMCL Sell Alert:
http://support-resistance-report.com/AlertIMCLgr.html
QQQQ - Tuesday's 5-Minute Chart...
The QQQQ held onto gains from Monday's rally on Tuesday by spending the day in a narrow trading range that became more narrow as the day wore on.
Tuesday's 5-Minute Chart (below) shows the development of a triangle from which the QQQQ will break either up and out or down and out.
On Wednesday, no economic reports are scheduled for publication. The QQQQ will trade, therefore, based on whatever steam it has left.
If the QQQQ is, indeed, moving up and down within the context of a trading range as the ADX Indicator on the Daily Chart suggests, then, it has now risen to the upper end of that range. This observation, in addition to the fact that Tuesday's price action resulted in another Doji style candlestick (see the Daily Chart) suggests that caution on the long side is in order.
QQQQ - Tuesday's 5-Minute Chart...
The QQQQ held onto gains from Monday's rally on Tuesday by spending the day in a narrow trading range that became more narrow as the day wore on.
Tuesday's 5-Minute Chart (below) shows the development of a triangle from which the QQQQ will break either up and out or down and out.
On Wednesday, no economic reports are scheduled for publication. The QQQQ will trade, therefore, based on whatever steam it has left.
If the QQQQ is, indeed, moving up and down within the context of a trading range as the ADX Indicator on the Daily Chart suggests, then, it has now risen to the upper end of that range. This observation, in addition to the fact that Tuesday's price action resulted in another Doji style candlestick (see the Daily Chart) suggests that caution on the long side is in order.