ENER Stock Example, Support and Resistance

The recent price action of Energy Conversion Devices (ENER) offers a great example of simple support and resistance. Support and Resistance is a basic form of technical analysis that can be used in a variety of different circumstances to provide investors an easy way to predict stock movement.

We can refer to the six month daily stock chart below of Energy Conversion Devices (ENER) as our example:

1. Points one give us a first glimpse into the resistance ENER saw around $35 a share. As we can see once the original high was made it took two more pushes to break through, which lead to a large stock price gap and new highs for the stock.

2. Points two offer another more recent example of ENER at technical resistance. This time it was at $73 a share and the third push was the one to claim higher highs.

3. Points three show us the support ENER has received while forming its latest base. This would also be called a support trendline. A common trend is for resistance to turn into support, which we can see with the first “3” on the left. The $60 resistance once broken then became support.

4. Point four highlighted in purple shows us the next area the stock will most likely find resistance. Climbing above $83 a share would not represent higher highs but also new 52-week and all-time price highs.

Further Education

Make $42 Million Trading Stocks! Learn technical analysis with Dan Zanger, World Record Holder who turned $15,000 into $42 million. Click here to learn how.

Join 17,000 Investors

Receive Daily Market Recaps directly in your email inbox!

Log, Store, and Analyze Your Trades

Whether you're a new or seasoned investor, the StockTrader.com Trade Journal helps you trade better:
  • Step 1 - Add trades
  • Step 2 - Mark strategies and mistakes
  • Step 3 - Analyze your results
  • Step 4 - Improve your trading
Get Started Now