30 Days Challenge: Identifying Support/Resistance for new stocks

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chirigota

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Hi everyone,

I thought of creating a thread where I could publish and share my daily efforts on learning to identify the support/resistance levels on stocks. I was thinking to spend everyday some time to sharpen my skill for detecting support/resistance levels on stocks.

Who knows, perhaps my thread might help you in spotting a stock that you might feel is worthy of your investment and make some money of it.

So for the next 30 days, you will at least see one new stock for which I will publish their support/resistance levels.

Since I am in Sweden, you will see in this thread, that I post drawn support/resistance levels on Swedish stocks too.

If you spot a support/resistance level that you feel is questionable, then please feel free to point that out.

I am sure this thread, will be followed by beginners who are starting out in the TA world too so your feedback will be positively appreciated.
 
If you're going to do this for 30 days, you'd make the most of it by thinking carefully about what you're doing and why.

"Support" is that level at which either sellers refuse to lower the ask or buyers step in to support the price. Sometimes both occur relatively simultaneously. One example of this is Aug/Sep '11. No other "support" lines matter. "Resistance" is that level at which buyers refuse to pay the ask. Sellers can then rush in to lower it in order to attract trades or price may just sit. Either way, no one is attempting to "break through" anything. The most important early example of this is Sep '10, made even more important by the rapid failure. This level holds for three years.

I suggest you get rid of all the lines and begin again with the arrows. Everybody draws lines like these and they all get it wrong. What you're trying to do with the arrows will be far more likely to put you on the correct path.

Db
 
dbphoenix said:
If you're going to do this for 30 days, you'd make the most of it by thinking carefully about what you're doing and why.

"Support" is that level at which either sellers refuse to lower the ask or buyers step in to support the price. Sometimes both occur relatively simultaneously. One example of this is Aug/Sep '11. No other "support" lines matter. "Resistance" is that level at which buyers refuse to pay the ask. Sellers can then rush in to lower it in order to attract trades or price may just sit. Either way, no one is attempting to "break through" anything. The most important early example of this is Sep '10, made even more important by the rapid failure. This level holds for three years.

I suggest you get rid of all the lines and begin again with the arrows. Everybody draws lines like these and they all get it wrong. What you're trying to do with the arrows will be far more likely to put you on the correct path.

Db
Click to expand...

Thank you for the detailed feedback. It felt like Jose Mourinho handing written feedback to Hazard :clap:
 
Precise Biometrics

This post is for Precise Biometrics, a biometrics company in Sweden.

https://www.imageupload.co.uk/image/cHvR

It is a daily development chart from approximately 2015-02-01 till today.

1.) Uptrend starts around 4,30 SEK and continues till 6,90 SEK.
2.) Between middle of August and end of October, the market trades between 5,60 SEK and 4,80 SEK.

The support level at 4,80 SEK is hit at least 4 times between end of August and middle of September.

The resistance level at 5,60 SEK is hit at least 4 times between end of August and end of September.

3.) The market uptrends and finds resistance at around 6,60 SEK while having support at 6,15-6,20 SEK area.

4)The market trades for a few days at 7,50 SEK. This is a support level at 7,50 SEK in the future.

5.) A candle in November closes at 3,88 SEK level which previously was a resistance level in July.
 
Sensys Gatso Group

This one is for Sensys Gatso Group.

https://www.imageupload.co.uk/image/cHNy

Overall, the stock is as oversold has it can be.

The stock closed yesterday below the support zone of 2,88 SEK.

The next support zone after 2,88 is around 2,56 SEK.

If we close today below 2,90 SEK, I think we are probably going to visit 2,56-2,60 SEK as the current lowest price was actually 2,64 SEK.
 
Evolution Gaming Group

This one is for Evolution Gaming Group.

I drew what I felt were the main support and resistance zones without cluttering the graph with unnecessary lines.

On the weekly graph, the support level at around 240 SEK is an interesting level as we have a couple of candles closing on the line.

There are wicks falling beneath the 240 SEK support line however we can see there is enough buying power that we close on right on the line.


On the daily graph, the level of 232 SEK is even more clear in that it is a strong support level between 30th September and mid November of 2015.

There was a minor resistance level at around 253 SEK that I did not draw on the daily graph.



Evolution Gaming Group - Weekly

http://postimg.org/image/b0h2r0cmf/


Evolution Gaming Group - Daily

http://postimg.org/image/5aw8syh2f/
 
Hexagon AB

This one is for Hexagon AB.


It is on a monthly level from 2009 till 2015.

http://postimg.org/image/5qgr0qesj/

1.) Support level around 117 SEK used in 2012.
"Ceiling becomes the floor" as it can be see in year 2010 and 2012.

2.) Support level at around 240 SEK.

3.) Resistance zone at around 318-319 SEK.

4.) Support level at around 298 SEK.
Click to expand...
 
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