|
Pivot Value
|
282.15
|
| 1st Support Value |
279.70 |
2nd Support Value |
276.60 |
| 1st Resistance Value |
285.25 |
2nd Resistance Value |
287.70 |
PIVOT Points
Pivots Points are significant levels used to determine directional movement, support
and resistance. Standard Pivot Points use the prior period's high, low and close
to formulate future support and resistance. In this regard, Pivot Points are predictive
or leading indicators. E.g. previous session's High, Low and close is used to calculate
Pivot, support and resistance for following session
The Pivot Point level sets the general tone for price action. A move sustaining
above the Pivot Point suggests strength with a probable target to the first resistance.
A break above first resistance shows even more strength with a probable target to
the third resistance level. The converse is true on the downside. A move below
the Pivot Point suggests weakness with a target to the first support level. A break
below the first support level shows even more weakness with a target to the third
support level.
Support and Resistance
Support and resistance represent key junctures where the
forces of supply and demand meet. In the financial markets, prices are driven by
excessive supply (down) and demand (up). As demand increases, prices advance and
as supply overpowers, prices decline. When supply and demand are equal, prices move
sideways as bullish and bearish camps fight it out for control over prices. Supports
once breached reverse its role and acts as resistance for future price action. On
the flip side, once resistance is breached decisively (with higher volumes) it changes
its role as support for further price action. This is true irrespective of time
frame.
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