US Major Markets:

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The concepts of Support and Resistance are 2 of the most discussed attributes of technical analysis, they are often regarded as a subject that is complex by those who are just learning to trade.

Traders refer to price levels on charts that tend to act as barriers from preventing the price of an asset from getting pushed in a certain direction, either North or South.

Most technical traders incorporate the power of various technical indicators, such as MAs (moving averages), to aid in predicting future short-term momentum. A MA is a constantly changing line that smooths out past price data while also allowing the trader to identify Support and Resistance.

The price of the asset (index, stock, commodity, bond) finds support at the MA when the trend is up, and how it acts as Resistance when the trend is down.

Most traders experiment with different time periods in their MAs so that they can find the one that works best for this specific task, the most used are the 10-Day, 20-Day, 50-Day, and 200-Day MAs for stocks.

Support and Resistance

DJIA close: 18,105.95

Resistance

18,206 a Mar 2015 high
18,289 the Mar 2015 high
18,351 the May 2015 all-time high

Support

18,104 the Dec 2014 high
The 50-Day EMA: 17,998
17,991 a Dec 2014 high
17,923 a Jan 2015 high
17,748 a Apr 2015 low
17,715 the Jun 2015 low
The 200-Day SMA: 17,651

 

S&P 500 close: 2109.99

Resistance

2115 a Mar 2015 high
2119.59 the Feb 2015 high
2126 the Apr 2015 high
2135 the May 2015 all-time high

Support

The 50-Day EMA: 2101
2094 the Dec 2014 high
2079 a Nov 2014 high
2062 a Jan 2015 lower high
The 200-Day SMA: 2050

 

NAS 100 Close: 5117.00

Resistance

5120 the Apr 2015 high
5132.52 the Mar 2000 all-time high
5207 from the upper channel line

Support

5042 the Mar 2015 high
The 50-Day EMA: 5029
5008.57 a Mar 2015 high
4974 the Jun 2015 low
4912 an Apr 2015 low
4825 the Mar 2015 low
4815 the Dec 2014 high
4811 the Nov 2014 high
The 200-Day SMA: 4783

Have a terrific week.

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