finding or calculating resistance

[Greg]

Doc, how is it you can predict resistance points using the chart you recommend.  I'm unable to see the clear picture here..

Thanks

Greg

[Dr PennyStock]

Doc, how is it you can predict resistance points using the chart you recommend.  I'm unable to see the clear picture here..

Thanks

Greg

Greg click this link below and tell me what you think are the support and resistance points.

http://stockcharts.com/h-sc/ui?s=SWVC&p=D&b=5&g=0&id=p84946144276

It's very easy, believe me, just "read" the chart carefully.

[Greg]

Well the SAR is .008.  But is the resistance .010 and .014? 

[Dr PennyStock]

Yes, they are correct, however you forgot the support at 0.007 and the resistance at 0.0105 and 0.0114, they are also on the chart, just look again.

[Greg]

OK I undertstand .0070 support and .0114 resistance, but fail to recognize .0105 as a resistanc point..
Can you elaborate please???

Thanks Doc, this is helping me understand things I thought I knew but never really went to the extent you helping us with..

Greg

[Dr PennyStock]

OK I undertstand .0070 support and .0114 resistance, but fail to recognize .0105 as a resistanc point..
Can you elaborate please???

Thanks Doc, this is helping me understand things I thought I knew but never really went to the extent you helping us with..

Greg

Look on the chart to the month of November 2007, the stock supported at 0.0105, since then this mark functioned as support and resistance, if the stock trades below this point, you must count with this mark to be a possible resistance point.

Never forget, broken supports become resistances and vice-versa.

[Greg]

Great, I remember now you telling someone else this, but it didn't sink in at the time. 

Thanks Again

Greg

[Greg]

Doc, When the MAs Cross and sometimes lag the price like the SAR, what does that tell you?

[Dr PennyStock]

Doc, When the MAs Cross and sometimes lag the price like the SAR, what does that tell you?

I don't give much importance to MA's crossing because many times when the MA50 cross the MA200 to the up side, the run is already dead, it's time to sell, not to buy, I give more attention to the direction of the MA's, pointing up, down, or flat.

[Dzielak51]

So i take it Up is a buy? down is a sell? and flat is a hold?

[Dr PennyStock]

So i take it Up is a buy? down is a sell? and flat is a hold?

Yes, that's correct.

[Dzielak51]

ok, one more question.  Which MA you talking about?

MA50? 200?
MACD green? red?

[Chris_Ben]

He is talking about the MA50 and MA200.  In order to get a true reading it is necessary to look at them both.  Just because one is going done and the other up doesnt mean the stock is a buy or sell. 

In the last 200 days if the stock average is going down, the average of the past 50 days can be going up and indicate a buy.  Also, if the average over the last 200 shows a steady increase, a slight dip in the MA50 may not indicate a sell because history has shown the upward trend. 

In addition, the MACD DI+ (green) pointing up can indicate a buy also.

[Tommy86]

thanks Chris