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

refer to levels on 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, ) 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: 18,086.45

Resistance
18,200 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

17,991 a Dec 2014 high

The 50-Day EMA: 17,928

17,923 a Jan 2015 high

17,748 the mid-Apr 2015 low

The 200-Day SMA: 17,724

 

S&P 500 close: 2126.64

Resistance

2126 the Apr 2015 high

2130 the Jun 2015 high

2135 the May 2015 high

Support

2120 the Feb 2015 high

2115 a Mar 2015 high

2094 the Dec 2014 high

The 50-Day EMA: 2096

2079 the Nov 2014 high

2062 a Jan 2015 high

The 200-Day SMA: 2060

 

NAS 100 closed: 5210.14

Resistance

5246 the upper trendline

Support

5164 the Jun 2015 all time high

5132.52 the Mar 2000 high

5120 the Apr 2015 high

5042 the Mar 2015 high

The 50-Day EMA: 5044

5008.57 a Mar 2015 high

4974 the Jun 2015 low

4912 a Apr 2015 low

4825 the Mar 2015 low

The 200-Day SMA: 4831

Have a terrific week.

Paul Ebeling

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