Resistance, when captured, becomes Support...
Kovu,
Let's get our terms straight...
Support does not get "captured".
Resistance gets "captured" (by a rising price).
Support gets "violated" (by a falling price).
When either of those two things happen, the following principles of Support and Resistance apply:
1) Resistance, when "captured", becomes Support.
2) Support, when "violated", becomes Resistance.
These two principles are "in play" every day in the market.
Traders who are unaware of them or choose to ignore them, do so at their own peril.
When you receive the "Support & Resistance Report" that applies to Monday's trade, you will see a thick area of Support beneath Friday's closing price ($42.16).
By "thick" area of Support, I mean that there are 7 individual aspects of Support beneath Friday's closing price, most of which are only 2 to 6 cents from its neighbor.
That doesn't mean that the QQQQ won't slosh around within that 7 member range on Monday.
It does mean, however, that it will required an extreme amount of weakness for the QQQQ to violate that 7 member area and continue lower.
It may mean that the odds favor a little more upside after the sloshing is over.
Congratulations on the profit from your fist live trade. It was a difficult trading week last week and a 49 cent profit represents good success.
A lot of traders where selling at Monday's, Tuesday's and Wednesday's lows...just when they should have been buying...at the area of "Gathering Support" between $41.33 and $41.39.
Mike
Buy at Support
Sell at Resistance
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