Saturday, July 08, 2006 10:50:14 PM
Chart & Comments for AKAM, BBBY, NVDA and DNA...
The areas of Gathering Support and Gathering Resistance on the "Support & Resistance Report" Spreadsheet provide specific information about whether you should be in a trade or, perhaps more importantly, out of a trade.
Success in using the "Support & Resistance Report" Strategy depends entirely on how well the following 4 Trading Rules are observed:
1) When the price of a stock falls to an area of "Gathering Support" and is unable to fall below it (as is often the case with "Gathering Support", at least upon first approach), then it is time to venture a purchase. Trading Rule #1 applied to AKAM, BBBY and NVDA during Friday's trade (See the respective 5-Minute Charts below.)
2) When, however, the price of a stock falls to an area of "Gathering Support" and then breaks below it, it is a sign of extraordinary weakness, a warning to close a long position (and to venture a short sale).
3) When the price of a stock rises to an area of "Gathering Resistance" and is unable to rise above it (as is often the case with "Gathering Resistance", at least upon first approach), then it is time to venture a short sale. Trading Rule #3 applied to DNA during Friday's trade (See the 5-Minute Chart below.)
4) When, however, the price of a stock rises to an area of "Gathering Resistance" and then breaks above it, it is a sign of extraordinary strength, a warning to close a short position (and to venture a purchase).
Note: How a stock behaves after it reaches an area of "Gathering Support" or "Gathering Resistance" is best observed using a 5-Minute Chart. That's because a 5-Minute Chart shows the details of how an area of "Gathering Support" or "Gathering Resistance" invariably serves as a boundary that supports a falling stock or suppresses a rising stock:
AKAM (5 Minute Chart):
BBBY (5 Minute Chart):
NVDA (5 Minute Chart):
DNA (5 Minute Chart):
The areas of Gathering Support and Gathering Resistance on the "Support & Resistance Report" Spreadsheet provide specific information about whether you should be in a trade or, perhaps more importantly, out of a trade.
Success in using the "Support & Resistance Report" Strategy depends entirely on how well the following 4 Trading Rules are observed:
1) When the price of a stock falls to an area of "Gathering Support" and is unable to fall below it (as is often the case with "Gathering Support", at least upon first approach), then it is time to venture a purchase. Trading Rule #1 applied to AKAM, BBBY and NVDA during Friday's trade (See the respective 5-Minute Charts below.)
2) When, however, the price of a stock falls to an area of "Gathering Support" and then breaks below it, it is a sign of extraordinary weakness, a warning to close a long position (and to venture a short sale).
3) When the price of a stock rises to an area of "Gathering Resistance" and is unable to rise above it (as is often the case with "Gathering Resistance", at least upon first approach), then it is time to venture a short sale. Trading Rule #3 applied to DNA during Friday's trade (See the 5-Minute Chart below.)
4) When, however, the price of a stock rises to an area of "Gathering Resistance" and then breaks above it, it is a sign of extraordinary strength, a warning to close a short position (and to venture a purchase).
Note: How a stock behaves after it reaches an area of "Gathering Support" or "Gathering Resistance" is best observed using a 5-Minute Chart. That's because a 5-Minute Chart shows the details of how an area of "Gathering Support" or "Gathering Resistance" invariably serves as a boundary that supports a falling stock or suppresses a rising stock:
AKAM (5 Minute Chart):
BBBY (5 Minute Chart):
NVDA (5 Minute Chart):
DNA (5 Minute Chart):
Buy at Support
Sell at Resistance
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