IF supp resistance broken, is it STILL VALID???

[jamesj188]

Hey guys, if supp or resistance break is it still valid?????????????

GOOD EG. $10 and $12 on stock entr (in picutre below with star beside it)
Will it act as (a weak or a strong) resistance for this stock going up from here???

Reason I ask is because it held up before but then price broke thru it.....
so is it still valid????

 

[JahDave]

Hey guys, if supp or resistance break is it still valid?????????????

GOOD EG. $10 and $12 on stock entr (in picutre below with star beside it)
Will it act as (a weak or a strong) resistance for this stock going up from here???

Reason I ask is because it held up before but then price broke thru it.....
so is it still valid????

I don't have a lot of info here because i always use 3 time frames to analyse a trade, but looking at just this chart you posted then I would say that this will go up and test the trendline, and then make a strong move down.

Good Trading,
Dave

 

[JahDave]

I don't think it will make a new high because the move down is in a five wave pattern which is impulsive to the downside. On the other hand this looks like the first impulse wave down, so this move up looks like a wave 2 and wave 2's usually make a deep retracement. The good news is that wave 3 is coming after wave 2 and that is usually the strongest wave, to the downside in this case. If I was in this trade then I would stay in unless it made a new high and then i would count five waves down after wave 2 finishes and close my position early in wave 5.

 

[JahDave]

Please keep me posted, and let me know how this plays out.

Thanks,
Dave

 

[alpbeta]

it is considers a support/resistance as long as the price had held at one price for a considerable amount of time or made a peak/trough. however, for me, i will focus on the price extreme more. they are much significant than the one traded along the trend.
so, in this case, $10 is more important than $12.
in addition, you may want to apply for different moving averages to look for support/resistance. for ENTR, i saw two pullbacks from the 150dSMA recently.

Hey guys, if supp or resistance break is it still valid?????????????

GOOD EG. $10 and $12 on stock entr (in picutre below with star beside it)
Will it act as (a weak or a strong) resistance for this stock going up from here???

Reason I ask is because it held up before but then price broke thru it.....
so is it still valid????

 

[forker]

My experience is that S&R is always relevant, broken or not. Just because it's broken doesn't mean it's now useless. 2 of my 3 strategies involve S&R that has broken and used again upon return.