Using Support and Resistance Levels as Price Objectives
Points near support and resistance levels provide a reasonable choice for
setting initial (price) objectives . . . Generally speaking, support and
resistance levels usually represent only temporary rather than major
objectives. Consequently, in using this approach, it is advisable to seek to
reenter the position at a better price if a reaction does develop.
—Jack Schwager, from
Getting Started in Technical Analysis (1999, John
Wiley & Sons, New York).