Ex-Dividend adjusts and TA

[cd173]

Hello Everyone

Hope you're all having a good Easter

When a stock is adjusted downwards on the ex-dividend day, how does this affect simple TA such as support and resistance?
For example, HBOS was comfortably moving within an S/R range of approx 825p to 885p. On ex-div day it adjusted down about 20p, which pushed it below the current support level.
So from anyone's experience would the gap most likely be filled or would the price action need to settle down again and find new S/R perhaps?
In simple terms, is ex-div considered as price action?

Apologies if it's somewhat generalised, but I'd be interested to know the best way of handling these 'moves'.

Thanks in advance for any help anyone can give
Chris

 

[jimmy1jag]

In simple terms, is ex-div considered as price action?

Apologies if it's somewhat generalised, but I'd be interested to know the best way of handling these 'moves'.


Chris

In a generalised answer to a generalised question, going ex-dividend should be treated in the same way that news days (eg earnings announcements) are treated imho....

And of course there are numerous permutations depending on the trend of the stock in question etc etc

 

[cd173]

Hi jimmy1jag

Thanks for the reply.
A case of letting the price settle down again I believe and wait and see.
Time to check the S and R again!

Cheers
C