Advanced Micro Devices Inc (AMD)

[sgolds]

dougSF30, let me suggest some reading for you -

Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications by John J. Murphy, published by the New York Institute of Finance.

The retracement support points came directly from this book.

So before you say that I was seriously misleading, you should read what the real experts in the field have to say. I don't post these things as hunches or opinions, rather I posted very standard guidelines that have been used by traders since the very early 20th century.

If I can get the time later, I'll word process and post the section starting on p. 59, The Psychology of Support and Resistance. One quick quote from that section:

It is useful once in a while to pause and reflect on why the price patterns used by chartists, and concepts like support and resistance, actually do work. It's not because of some magic produced by the charts or some lines drawn on those charts. These patterns work because the provide pictures of what the market participants are actually doing and enable us to determine their reactions to market events. Chart analysis is actually a study of human psychology and the reactions of traders to changing market conditions.

Do you have a better explanation for the patterns of stock price movement? If stocks traded only on fundamentals then they would tend to move up, down or sideways in slow, predictable curves based on changing news only, with an occasional gap for surprises. None of the frequent eratic ups and downs that we witness instead - how do you account for the eratic movements if not for human psychology?