April 16, 2009
Point of Resistance For ANZ?
By Planet Wealth
After some week of a bull run on the market, there are signs that things could be trying break out of the bear run. It is times like these, reading the market is crucial and understanding what could happen, so we may be ready for if it happens.
To build a case scenario so we are prepared for what may come, we take some of the basic powerful tools we know. Peaks and troughs, to see who is in control, and support/resistance lines to see where the stock is likely to bounce and rebound.
Take ANZ for example. After respecting a down trend channel for the past 18 months, it has broken free of it and also broken through a major resistance at $15.50line to make a major Higher Peak (HP). Right now it seems to be stalling at a resistance line that was valid in the past and has some validity in the last 12 months. Where it rebound here or at the next resistance line up, this will now be a Major Higher Peak(HP). Once it rebounds it would be reasonable to reckon it would use the $15.50 line (past resistance) as a support line. That would then make a Higher Trough. Higher Peaks and Higher Troughs = Buyers in control.
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