Next strong support level?

wsaman · 1 Next strong support level? Mon Oct 22, 2012 9:36 pm

wsaman

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As per my broker it's 5500.
If it corrects, tomorrow the market would turn to green..
But It's not sure whether turn to green or, continue red below 5500
What do u think guys... Tech experts... Your idea please????........

notme · 2 Re: Next strong support level? Mon Oct 22, 2012 9:48 pm

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not an expert view .on common sense it might go below 5500

smallville · 3 Re: Next strong support level? Mon Oct 22, 2012 10:16 pm

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Still this has not down to 5500 level....

So I';m eagerly watchin the 5550 level cuz if turn it can go green in coming days Wink

Light of Hope · 4 Re: Next strong support level? Tue Oct 23, 2012 8:21 am

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many support levels have failed and haven't been able to turn the market upward. I want be suprised even if 5500 failes.

zen · 5 Re: Next strong support level? Tue Oct 23, 2012 9:51 am

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I think 5500 will also be broken. The volumes will be low but it will be broken. People sell and it gets red, which Makes others panic and they also sell, making the market even more red starting another round of panic.It's like a vicious circle and it will only stop when the valuations become attractive to big investors and foreigners.

Universalgoal · 6 Re: Next strong support level? Tue Oct 23, 2012 9:59 am

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resistant levels are strong than support levels

Hanoifortune · 7 Re: Next strong support level? Tue Oct 23, 2012 10:08 am

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@Light of Hope wrote:many support levels have failed and haven't been able to turn the market upward. I want be suprised even if 5500 failes.

because you are using out dated tools,Pls upgrade with sophisticated tools to check the levels

zen · 8 Re: Next strong support level? Tue Oct 23, 2012 11:01 am

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@Hanoifortune wrote:

@Light of Hope wrote:many support levels have failed and haven't been able to turn the market upward. I want be suprised even if 5500 failes.

because you are using out dated tools,Pls upgrade with sophisticated tools to check the levels

Could you please tell us what those tools are?

gamaya · 9 Re: Next strong support level? Tue Oct 23, 2012 11:28 am

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Its the foreign buying that caused the market run in the first place. Not the appointment of a new chairman. Its the foreign buying which will turn the market this time also.

smallville · 10 Re: Next strong support level? Tue Oct 23, 2012 12:13 pm

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so now 5550 failed.. Lets wait for 5500 if not 5400.. Evil or Very Mad

Expert · 11 Re: Next strong support level? Tue Oct 23, 2012 12:43 pm

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All of you could be correct in some way. But, there are different ideas. Which could be the one that is most accurate?

How are these support and resistance levels are calculated? Can someone conversant with them enlighten us, please?

Expert · 12 Re: Next strong support level? Tue Oct 23, 2012 1:43 pm

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@smallville
How did you arrive at the figures 5550, 5500 and 5400?
I just would like to know how you calculate these. I am trying to calculate and never get most these values....

zen · 13 Re: Next strong support level? Tue Oct 23, 2012 2:38 pm

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@Expert wrote:@smallville
How did you arrive at the figures 5550, 5500 and 5400?
I just would like to know how you calculate these. I am trying to calculate and never get most these values....

I'm not small but I'll explain anyway. Support and resistance levels are not calculated but observed. When the price bounce off at some point (ex- ASI-6000) we say it is a resistance level. When the price go up again and bounce back at 6000, it confirms the resistance at 6000. The more times this happens, the stronger the resistance level. Support level the exact opposite. You should also know that once a resistance is broken, it becomes a support level. When the market finally breach 6000, it would be very difficult to go below it. Look at a one year ASI chart very carefully. You can see the support and resistance levels for yourself.

smallville · 14 Re: Next strong support level? Tue Oct 23, 2012 3:41 pm

smallville

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Zen,

Ur coorect on the supp/res levels.. Thanks.

expert,

We use fibonachi retracement sequences to predict the market pull back levels from a certain high.

We've seen market going down to 4725 and again coming to 6400, so we now have two points to draw a Fibonachi.
A fibonachi has retracement levels i.e 23.8%, 38.2% 50%.......
We beleive a stock or an index could hold ground at these levels. Mostly 35.2% & 50% are strong support levels backtested by the theorist.

For ASI movements, I used DFN sofware to draw these lines and visually inspect the levels. Cuz there's a difference on the levels that DFN indicates and visual.

So to me; 5570 was the fib 23.6%.. 5550 was a point that I thought the market would bounce (my imagination)

Since 5470 was broken the 38.2% fib support is there also @ 5500..

But hope market may turn from here without falling to that deep..

snandasiri · 15 Re: Next strong support level? Tue Oct 23, 2012 8:08 pm

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@zen wrote:

@Expert wrote:@smallville
How did you arrive at the figures 5550, 5500 and 5400?
I just would like to know how you calculate these. I am trying to calculate and never get most these values....

I'm not small but I'll explain anyway. Support and resistance levels are not calculated but observed. When the price bounce off at some point (ex- ASI-6000) we say it is a resistance level. When the price go up again and bounce back at 6000, it confirms the resistance at 6000. The more times this happens, the stronger the resistance level. Support level the exact opposite. You should also know that once a resistance is broken, it becomes a support level. When the market finally breach 6000, it would be very difficult to go below it. Look at a one year ASI chart very carefully. You can see the support and resistance levels for yourself.

Thanks expert for asking this and thanks zen for educating us.
I was curious about support and resistance levels.and searching the web about it.
Thanks again.

Hanoifortune · 16 Re: Next strong support level? Wed Oct 24, 2012 8:57 pm

Hanoifortune

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@zen wrote:

@Hanoifortune wrote:

@Light of Hope wrote:many support levels have failed and haven't been able to turn the market upward. I want be suprised even if 5500 failes.

because you are using out dated tools,Pls upgrade with sophisticated tools to check the levels

Could you please tell us what those tools are?

http://www.Market-Analyst.com

Redbulls · 17 Re: Next strong support level? Wed Oct 24, 2012 9:02 pm

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@snandasiri wrote:

@zen wrote:

@Expert wrote:@smallville
How did you arrive at the figures 5550, 5500 and 5400?
I just would like to know how you calculate these. I am trying to calculate and never get most these values....

I'm not small but I'll explain anyway. Support and resistance levels are not calculated but observed. When the price bounce off at some point (ex- ASI-6000) we say it is a resistance level. When the price go up again and bounce back at 6000, it confirms the resistance at 6000. The more times this happens, the stronger the resistance level. Support level the exact opposite. You should also know that once a resistance is broken, it becomes a support level. When the market finally breach 6000, it would be very difficult to go below it. Look at a one year ASI chart very carefully. You can see the support and resistance levels for yourself.

Thanks expert for asking this and thanks zen for educating us.
I was curious about support and resistance levels.and searching the web about it.
Thanks again.

http://forum.srilankaequity.com/t2952-support-and-resistance

Expert · 18 Re: Next strong support level? Thu Oct 25, 2012 10:56 am

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Thanks all for your contributions. I wanted to get this clarified as I also had fascinations over this fibonacci.

@zen
Thanks for the points you have brought in, especially about what is OBSERVED.

@smallville
I am more interested in knowing how these exact points of percentages are arrived at. I searched the 'net but couldn't find the basis behind these figures. I have some idea and I want to validate it.

And it is best when you imagine something, quote it as what you imagine and not to mix it up with calculated or observed things. When you say something observed say it is something observed and if possible at what points in time and how many times. When something calculated, you can say according to whatever the calculation. Not finding fault just a suggestion for clarity to others.

I too use DFN but what do you mean by DFN indicated levels and what is visual? If you can give an example with a chart picture, that would be good.

@sandasiri
You are most welcome. I have done this for my clarity in this case but when I were at classrooms I have asked questions even when I understood and when I felt that others didn't. Just my nature.

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Next strong support level?

1 Next strong support level? Mon Oct 22, 2012 9:36 pm

wsaman

2 Re: Next strong support level? Mon Oct 22, 2012 9:48 pm

notme

3 Re: Next strong support level? Mon Oct 22, 2012 10:16 pm

smallville

4 Re: Next strong support level? Tue Oct 23, 2012 8:21 am

Light of Hope

5 Re: Next strong support level? Tue Oct 23, 2012 9:51 am

zen

6 Re: Next strong support level? Tue Oct 23, 2012 9:59 am

Universalgoal

7 Re: Next strong support level? Tue Oct 23, 2012 10:08 am

Hanoifortune

8 Re: Next strong support level? Tue Oct 23, 2012 11:01 am

zen

9 Re: Next strong support level? Tue Oct 23, 2012 11:28 am

gamaya

10 Re: Next strong support level? Tue Oct 23, 2012 12:13 pm

smallville

11 Re: Next strong support level? Tue Oct 23, 2012 12:43 pm

Expert

12 Re: Next strong support level? Tue Oct 23, 2012 1:43 pm

Expert

13 Re: Next strong support level? Tue Oct 23, 2012 2:38 pm

zen

14 Re: Next strong support level? Tue Oct 23, 2012 3:41 pm

smallville

15 Re: Next strong support level? Tue Oct 23, 2012 8:08 pm

snandasiri

16 Re: Next strong support level? Wed Oct 24, 2012 8:57 pm

Hanoifortune

17 Re: Next strong support level? Wed Oct 24, 2012 9:02 pm

Redbulls

18 Re: Next strong support level? Thu Oct 25, 2012 10:56 am

Expert

19 Re: Next strong support level?

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