Comments on: Agrium Inc, Canadian Tire Corp, Yellow Pages Income Fund – By The Numbers

By: John A

John A — Thu, 15 Oct 2009 19:34:18 +0000

Hi Jon.. Thanks for the explanation!! The website for the calcns. was very interesting. I have studied and used Tech. Analysis in various forms for a long time but never was aware of the market makers internals and the importance of these supt and res levels. Its something I shall add to my stock surveys. Also, do you know of any stats that track stock behavior after breaks above or below the res and supts?

Thanks again… john

By: Roy

Roy — Thu, 15 Oct 2009 19:23:58 +0000

It sure helps. Thanks Jon. Much appreciated.

By: Tech Talk

Tech Talk — Thu, 15 Oct 2009 17:18:49 +0000

Hi Roy, in the case of my calculation, using pivot points as indicated above, if a stock breaks resistance or support then new levels would be created based upon the high, low and close price for the day.

I know Donny V likes to chart it, so in that case if you have a breakout above (or below for that matter) a predeterminied level as a result of forming a new trend or reacting to market events then new levels would be formed. Calculating support and resistance levels is not an exact science, but a number of options could occur in determining the next level. The use of bollinger bands or moving averages are two such methods, or even opening up the time horizon to include levels reached during past events (eg. reverting from using 1-month data to 3-month).

Donny V would certainly be able to go into more detail than I what I’ve provided here, but I hope that helps.

Jon

By: Roy

Roy — Thu, 15 Oct 2009 16:33:12 +0000

Jon
What happens when a stock breaks the 2nd resistance? Is there no more resistance left EG SAP.

By: Tech Talk

Tech Talk — Thu, 15 Oct 2009 16:07:32 +0000

Hi Nirmal,
Certainly, I could definitely look into that. It looks like it would be a really useful addition to the Education section as well since this site mentions these technical indicators quite often.

In the meantime, you can refer to Don’s “Comining Seasonal Investing with Technical Analysis” report.

Let me see what further I can come up with.

Jon