AI
Friday, June 30, 2006 8:52:22 AM
Resistance, when captured, becomes Support...
The QQQQ demonstrated one of the principles of Support and Resistance in action on Thursday.
It's area of Gathering Resistance stood between $38.14 and $38.28 going into Thursday's trade.
The QQQQ found Resistance at that area upon its first approach, as is usually the case with an area of "Gathering Resistance".
The 2:15pm FOMC interest rate announcement, however, triggered a big push up that captured Thursday's area of "Gathering Resistance" by printing a high of $38.50.
A subsequent pull back to the upper end of Thursday's area of "Gathering Resistance" found Support at $38.26 from which the QQQQ continued its rally into the close.
That action demonstrates one of the principles of Support and Resistance that states, Resistance, when captured, becomes Support.
Thursday's area of "Gathering Resistance" (Sell Trigger) was transformed into an area of "Gathering Support" (Buy Trigger) when it was captured by a rising QQQQ.
QQQQ (5-Minute Chart):
The QQQQ demonstrated one of the principles of Support and Resistance in action on Thursday.
It's area of Gathering Resistance stood between $38.14 and $38.28 going into Thursday's trade.
The QQQQ found Resistance at that area upon its first approach, as is usually the case with an area of "Gathering Resistance".
The 2:15pm FOMC interest rate announcement, however, triggered a big push up that captured Thursday's area of "Gathering Resistance" by printing a high of $38.50.
A subsequent pull back to the upper end of Thursday's area of "Gathering Resistance" found Support at $38.26 from which the QQQQ continued its rally into the close.
That action demonstrates one of the principles of Support and Resistance that states, Resistance, when captured, becomes Support.
Thursday's area of "Gathering Resistance" (Sell Trigger) was transformed into an area of "Gathering Support" (Buy Trigger) when it was captured by a rising QQQQ.
QQQQ (5-Minute Chart):
Buy at Support
Sell at Resistance
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