The NASDAQ is
underperforming as it approaches key technical support levels between 2200 and 2175 on increasing volume. Oil is also approaching its 50% Fib.
retracement level and the psychologically significant $100.00 mark. The aggressive selling makes me less confident that the key technical levels will result in anything more than a consolidation point.
The titans of tech,
AAPL,
RIMM, and
GOOG are testing key support levels. I don't actively trade
GOOG, but
AAPL and
RIMM could go to $120.00 and $80.00 respectively, if these support levels don't hold.
The NASDAQ is underperforming as it approaches key technical support levels between 2200 and 2175 on increasing volume. Oil is also approaching its 50% Fib. retracement level and the psychologically significant $100.00 mark. The aggressive selling makes me less confident that the key technical levels will result in anything more than a consolidation point.
The titans of tech, AAPL, RIMM, and GOOG are testing key support levels. I don't actively trade GOOG, but AAPL and RIMM could go to $120.00 and $80.00 respectively, if these support levels don't hold.
3 comments:
love the trade in leh; shorting on one trade, going long the next trade. i am a new trader, trying to develop my own methods from your blog, trader x, and a few others. one item i can never get right is these support levels you get on your charts. like for aapl and rimm, you show 2 year charts. is the support based on weekly, monthly, or yearly indicator? are you using the "pivot points" to bring up pivot,s1,s2,r1,and r2. i can't seem to get the same support lines using my software. and your support lines line up perfect. are you just drawing the lines in the chart manually, based on previous lows? thanks
Thanks Joshua,
The supports are based on daily pivots which I define as price congestion points where price pivots and changes direction (usually round $ numbers for higher priced stocks). On the way up these pivots act as resistance and once broken, they act as support. If price tests support 2-3 times, it usually gives way implying that supply is greater than demand.
The three charts I posted here are based on a visual review of the S/R points, not on a calculation or special software. The S1, P, R1, R2 pivots are intraday pivots used for daytrading.
excellent. thank you for your help, much appreciated.
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