The purpose of this Market Call section is to
educate readers in technical analysis patterns and indicators. As with all investment
information, you need to research information and consult your financial advisor before
initiating any strategies that are contained in Market Call.
Also, you must realize that as with all trading strategies,
opinions can change quickly depending on market conditions and developments.
This column tries to present historical examples, potential set
ups, and examples of entry and exit strategies.
Also, you must realize that as with all trading strategies, opinions can
change quickly depending on market conditions and developments.
This column tries to present historical examples, potential set ups, and
examples of entry and exit strategies.
Focus on Exit
Drawing Trendlines in a Support and Resistance Channel
Support and resistance can take many shapes. Sometimes it is a horizontal
line across support and many times it takes the shapes an angled channel.
The drawing of the trendlines is basically the same. You draw them across
the bottom support.
It is a good idea for a trader to be drawing trendlines on their charts to
help them visualize these support and resistance areas.
The chart below does not have trendlines drawn on them. You should print
this chart and draw your own.
Let's draw these trendlines on Intel, (NASDAQ: INTC).
On last Friday, INTC broke out to new highs from the previous high of 86 on
Thursday.
When a stock breaks out, it would be expected that the stock continue to
trade higher. In this case, INTC could not hold the gains from Friday and
are now in danger of taking out the lows of Friday.
This would be a break of a 20 period low.
You can also see from the chart below how that many of the indicators that
we use are also signaling a Sell on INTC.
