Moses’ Stock Analysis April 23, 2016
Support and Reistance
Support is like floor, when the price action touch the floor, or support the price action can not go further south, or lower.
Resistance is like ceiling, when the price action reach the ceiling, or resistance the price action can not go further north, or higher.
Trading is as simple as ABC, buy at support and sell at resistance. There are fundamental and technical ways to determine support and resistance. However, many institutions are easily spot the support and resistance as they are more clearly define where the market is going to reverse. However, history has proved that is could be wrong, the price action will go beyond the level. It is wise to buffer the what if when the price action does not revere at support or resistance.
One key point, fundamental is an overall direction. However, technical analysis is the actual turning point. News, reports and so on are the one that alter the fundamental. It is important to note that, when the market has reverse, change in direction the news may still report that the market is either bullish or bearish.
Think!
True or true? Trading is as easy as ABC, buy support and sell resistance.
Example
Picture worth a thousand words. Review E5H chart, you will find this phenomenon.
April 22, 2016 Golden Agri Resources Weekly Chart
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Moses Stock Analysis and Scan
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