Another Way To Find Additional ‘Support’

  • April 22, 2003
  • Chris Tyler

 

This past week on TM’s TradersWire
we started putting up pre-market support and resistance alerts based on
stocks moving before the open due to earnings, or specific news affecting the
stock or sector.

09:28:16

Pre-Market
Technicals

Forest Labs (FRX)
is trading down approximately 10% in the pre-market on an earnings release this
morning. Potential support for the stock falls
in a zone between 47 – 48.15. This area includes 3 Fibonacci support levels
based off the July 02′ and and Feb 03′ Lows. The March pivot lows, as well as
the 200-Day EMA also confirm this zone as one area to watch for potential
reversal plays.

 

10:26:26

Intraday Setup Alert

Forest Labs (FRX)
has found support at the high end of our support zone mentioned in the 9:28 post
(based on NYSE opening). This action is confirming potential reversal set
ups, as the stock tries to form a Slim
Jim consolidation pattern off of the 48 level. Triggers out of the
consolidation would be above 48.50 with the stock down 4.07 at 48.40.

 



 

So, if you hadn’t noticed this new feature maybe
it’s time to take a look at how we start off our trading day each and every day.
Of course they all don’t work out as nicely as FRX, but when they do, hopefully
you’ll be better prepared to climb on board because of the additional
“support”  from your friends in the TM War room.

Chris Tyler

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