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JLS

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Alias Born 12/14/2004

JLS

Re: Yahoo4 post# 2313

Wednesday, 05/11/2016 7:51:09 PM

Wednesday, May 11, 2016 7:51:09 PM

Post# of 6399
Nope.

Don't know where you got 105 from.

I showed a red line that points at a price of $99.40. The stock has spent a lot of time at that level, most of the time below. Since DIS is above that level now, it's a support level. It could easily become a resistance level.

The chart to the right of the candlestick chart is the complete accumulation of Daily Closing Prices over the last 13 months. Over the entire date range (and price range), each horizontal spike is a bucket that contains the count of Closes within a very small price range -- for instance, 0.4% price width centered at the set price. Over time, then, the peaks are aligned at narrow price ranges that contain the most daily closes over the time period studied. In other words, that whole chart on the right is a true statistical collection of closing prices over the last 13 months. The spikes therefore are aligned with price levels that have been resistance or support -- AKA market prices at which a stock hesitates going higher or lower.

For instance, when you see a horizontal line with a dot at the end of it that lands on the grid line labeled 12, that means that there were 12 Daily Closes within that specific price bucket 12 times over the last 13 months. That is therefore either support or resistance, depending on which direction the trend was pointing at that time.

On the chart I indicated "First Support Level" with a red line, and it points to a price of about $99.40. That means that I think DIS goes at least that far down before attempting meaningful reversal upward. I also drew a lower red line and suggested that it wouldn't be unreasonable that DIS goes all the way down there, to $90, because it went below that price not too long ago. I didn't write anything about the path price takes over time, from one Sup/Res level to the next, because each additional step always has probability that is dependent on the process of achieving the process.
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