PEAKS AND VALLEYS—???

   

 

 

 

 

 

 

QUESTION: Can someone help me with a strategy called peaks and valleys?

REPLY:

Hi Kevin, There is no magical formula called “Peaks and Valleys.” Someone may have a strategy that they use to sell something.

Be careful. We call it Rolling stocks, and look for these movements all of the time

Go to a charting site and look for a one year chart of XOMA. Even though the stock is low priced,

you’ll see it traveling between $3.50 on the support side and $4.50 or so on the resistance side.

With those words in play, this movement is a stock moving between support on the low side, and resistance on the up side.

Many (indeed most) stocks move like this, some with an upward bias and some with a descending bias.

Most stocks rise and fall in fits and starts, and once you track a stock’s movements you can ascertain better the peaks and valleys.

If this doesn’t explain it well enough for you, then write more details so we have more to go on.

Wade

Stock MarketWade Cook