V.2:2 (60-65): Price, Action and Resistance by Jesse H. Thompson

V.2:2 (60-65): Price, Action and Resistance by Jesse H. Thompson
Item# \V02\C02\PRIC.PDF
$4.95
Availability: In Stock

Product Description

Price, Action and Resistance by Jesse H. Thompson

Origin, History and Recent Price Action

We can not obtain a full account of the "present position" (price potential), of any given stock or commodity without a review of its recent price origins, price history and price action. And a wider perspective is possible only by considering a greater time frame than is normally provided in the limited space of most chart services. Hence, the great value in keeping your own longer term charts on each vehicle you monitor.

The cycles of supply and demand are characteristically shorter for commodities than stocks both because commodities are so much more perishable and because the consumer demand for them is more immediate. The great secular movements of supply and demand usually run 2-4 years in commodities and much longer in stocks.

In this article, we will analyze the "present position" of the November 84 Soybean contract relative to price origin, price history and recent price action.

Price Origins and History

The first point of price origin that is relevant to the "present position" dates back to the last pulses of the most recent secular bear market low. This point is the 518 major low which occurred on 4 Oct 82 in the November 1982 contract (Chart A, Point A). Note that 518 was the final low of the major bear market extending downward from the 930 major top of 5 Nov 80. This great bear's price history consisted of five great swings downward, culminating at 518. The price history after the 518 low consists of two great swings up to the 968 major top of 13 Sep 83 (Chart A, Point B).

The downturning from the 968 top, and the subsequent reaction establishes the 968 top as the second major point of origin relevant to the "present position".




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order