GREY:MLKKF - Post by User
Comment by
schoron Apr 09, 2009 9:53pm
314 Views
Post# 15909865
RE: RE: RE: RE: If it consolidates above $1.0 next
RE: RE: RE: RE: If it consolidates above $1.0 nextOk, let me try.
Support and resistance can be found on numerous charts. Basically it means at what price are people willing to buy or sell this stock in some volume. I am not sure how these numbers are actually derived but if I was to calculate them myself I would use the l2 quotes and find the heavy volume on the bid and ask and lay those down as support and resistance levels (I think this is actually how its done).
The key with all this is charting and analysis and if your not into this stuff it can get pretty boring. Suffice it to say that you mostly care about support and resistance levels if your trading a stock. For the average investor, find a stock like ml, buy some, sell 1/2 when you double up, sell 1/2 when you double up again......
After all of that it comes down to why you bought ML in the first place. Did you buy it cause it was the hottest stock on stockhouse, did you buy it because your friend told you, or did you just buy it?
As for the support resistance levels. Yesterday we were sitting with resistance at .95, today this is support. If we drop below that on volume and copper prices go down over the weekend, then if your a short term trader, you would sell. If your believing the story of ML, then you hold.
Schor