The following stock chart of Covance (CVD) offers a great example of simple support and resistance. Support and Resistance is a basic form of technical analysis used commonly every day to mark potential buy and sell points on a chart.
Note: this chart of Covance (CVD) is a nine month daily stock chart:
1. The three 1s show us how CVD stock found resistance at $88 three times before finally breaking through. Participating in the break would have yielded an actual return of 10% in only seven days.
2. The four 2s show distinctly how $80 was a key support level for CVD. The stock held up at this price area several times over the course of five months before it finally broke to the upside above $88 a share.
3. The purple 3 shows us where the next resistance area currently is for CVD. Only time will tell if the stock will need another five month base to claim higher highs.
- Example 5, Symmetrical Triangle Example, Visa (V)
- Example 4, Symmetrical Triangle Example, Google (GOOG)
- Example 3, Descending Channel Example, First Solar (FSLR)
- Example 2, Covance (CVD) <– Currently Viewing
- Example 1, ENER Stock Example, Support and Resistance
Make $42 Million Trading Stocks! Learn technical analysis with Dan Zanger, World Record Holder who turned $15,000 into $42 million. Click here to learn how.