Registered User
Joined: 12/26/2010
Posts: 1
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Looking at DE's drop since earnings. Looks like it has hit 50 day moving average. Any other tips to looking for support?
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 Gold Customer
Joined: 4/10/2006
Posts: 954
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On a WEEKLY chart.
My guess is there is pretty good support in 79ish area, and 73 if the SP-500 breaks down.
I like the 13,26,52 week MA's, as hard as DE has broken I really would anticipate it hitting 81-79 area.
I posted on freestockcharts.com and sent you.
Perhaps CAT will follow....might be a leading indicator for a market correction. CAT @113 drop to 97 area.
??hmm
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Registered User
Joined: 9/2/2009
Posts: 85
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QUOTE (dg1)
Looking at DE's drop since earnings. Looks like it has hit 50 day moving average. Any other tips to looking for support?
Hey dg,
Ww is absolutely right. There is good support in the 78-79 area, favoring the 78 mark. However, this is a secondary support level, and even though it has come down hard in the last couple of sessions, I wouldn't be surprised if it bounces off the 81.35-82.53 level for a few points. So, if the market doesn't correct soon, a day trade might be considered right about here. As for your question on looking for support, draw 20, 50, and 200 sMa's in both the Daily and Weekly modes. Draw ascending channels with both ascending tops lines and ascending lows lines. In addition, you will clearly see a distinct reverse head -n- shoulders in both time frames. Here draw almost horizontal "neck-lines" as well. Finally, you will see that many of these lines will coincide with each other. The more lines at almost the same price level, the better the support. I hope you now comprehend, the levels ww and myself have given you here.
Good luck,
StarWoodIp
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