| MAR 1984
Price, Action and Resistance by Jesse H. Thompson
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 930½ 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 968½ major top of 13 Sep 83 (Chart A, Point B). The downturning from the 968½ top, and the subsequent reaction establishes the 968½ top as the second major point of origin relevant to the ""present position"".
by Jesse H. Thompson
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.