Saturday, June 5, 2010

(SUPPORT-RESISTANCE-NO MANS LAND)


Heres a clear chart of support, resistance and no mans land, the area in the middle of a consolidation zone is the most difficult area to predict in technical analysis.This chart demonstrates this fact, as price bounced off of support but never to reach resistance before supply hit the market and prices were forced to decline. I cant say with certainty that price wont keep on rising even after breaking the trendline because the area is considered to be neautral. Thus being called no mans land.It could still go either way and its best to avoid such price action.

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