All right, you've probably heard Technical Analysis many many times and you think technical like what like are we programming or something here? But it's not that when we talk about technical analysis, we're talking about charting okay Charting stocks, particularly with candlestick patterns et cetera, and we really really focus on the two main things. We look at our technical support and technical resistance.. Today, we're gon na really break those down., Hey everyone be sure to like share subscribe and ring that bell to be notified. As soon as we drop a new video.

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I'm lead trainer with StocksToTrade Tim Bohen.. I head up the team of all of our educators and the SteadyTrade Team is kind of our flagship product where we go live twice a day every single day getting into all of the nitty gritty of day trading swing, trading and even a little bit of longer Term type ideas too. So check out the SteadyTrade Team. All right.

That being said, let's talk about Technical Analysis 101, particularly focused on support and resistance.. Okay, so I'm gon na bring up a stock. Many of you are probably very very familiar with, and that is AMC. One of the big meme stocks, which, by the way, speaking of technical support and resistance, they've looking to reclaim a support level that broke last week..

So drop me a comment. Below. You can see. Amc is trading at 30 today.

If this can close above 30. Today. That's very bullish and I'm gon na explain why.. So I'm curious, you know this video they get edited, they get produced, they get published., Typically there's a week or two lag.

So drop me a comment.. What is AMC trading at and did it base at 30 and grind higher, as I suspect it may So that being said, I'm gon na start with that first line at 30 and I'm gon na talk about why. I think this is a key level., So you can see the big run-up in AMC going back to this summer. Well, even going back to remember last year, this was one of the big meme stocks back in January, going from two up to 20., And actually I'm gon na drop another little line right there.

Just kinda show you what I'm looking at in another line.. So you can see that, after that, big run-up in the winter - I guess January and then stock pulled back hard ground back and then for basically three months put in a base at I'm gon na call it eight it's probably more like 8.25, but remember when we're Talking these technical levels and technical analysis, it is more of an art than a science. Okay. So one thing I do want you to remember is do a little bit of rounding.

Okay, ?'Cause we're looking at key psychological levels, the mental mind.. So it isn't necessarily that important that 802 or 797 round to those whole dollar half dollars, because those are the areas that the human mind keys off of them. And just a quick analogy. I mean there's a reason that you'll drive by and you'll see a used car for 19,999..

There is a reason they do that because it seems cheaper than 20,000, even though, with $ 1 you see 19,999, it's a mental thing.. So that's why you'll never see 20,000. On a car, window. They've been selling used cars for a hundred years.

They know what they're doing okay So round a whole dollar half dollars. So I would call that support level at eight and then the resistance level would be 15. And you can see this stock. All of those months tried to break once ground up failed, tried to break again and then, when it finally did break, and this is the key thing, I want you to look at look at the corresponding value.

Okay, So remember volume is your confirming indicator. Okay, You don't wan na buy below average volume or average volume breakouts. Okay. So let's say this thing: didn't explode on volume and perked over 15 if it was still trading that same volume, which you can see pretty mediocre.

Just you know what 30 40 million shares kind of through the summer which for this stock and in this day and age, kind of low volume, if it would have broke 15 on that you'd be like whoa. What's you know, there's reason for concern: here., You look for high volume breakouts and you can see when it broke that one big day. What are we at just 700 million.? Sometimes these volume numbers and on the side I know I tend to go off into the weeds occasionally, but these volume numbers it's just like sometimes you'll hear me pause'cause. It almost doesn't compute.

Understand my friend we're in the wildest in the post 2020 world, while the stock market. In my 15 years. I mean listen. 2007.

I got started during the market crash., It was wild. I hear stories about the .com boom. I wasn't trading back in the'99 2000.. I hear stories about that, and I've read about it.

It is completely different. Now. See 700 million shares. It's like I have to like double check..

Anyway. The point is high volume relative to the 60-day average.. That 60-day moving average is what we look at for confirmation of volume.. So then, once it breaks big move, higher.

So to me, and hopefully to you you're starting to see that bracketing idea. And if you're ever on pre-market prep. You see me do this hand motion all the time. We like to see it is actually bullish.

When stocks base, when this thing bases and bases and bases that shows you that there's buyer support, where bitter support that are holding it above a key level. And then when it breaks that resistance level on volume, there's a good chance, it's gon na explode higher. And What happens is, and maybe you've heard this saying, `` Resistance tends to become support.''. So even if you would've bought that break of 15 because of the corresponding value, let's say it didn't go all the way to 75 and it pulled back odds.

Are it would've, based at that new breakout, level'cause you've got all new buyers that lifted the bid and pushed it above that.. So, even if you weren't in the green right away, there's a good chance, you're gon na base, maybe you're break even maybe you're down a little you're up a little and then you wait for that. Next confirmed breakout.. So that's why we love these key levels..

So now, let's fast forward to today, okay Very similar type point very similar setup.. So now we're looking at 30, okay, So 30 held back in July. It held again in August twice in August. And then again I get it that it didn't go all the way to 30, but you could see the stock pulled back three separate times.

And again. I know it held at 34 35, but we're rounding, we're looking we're averaging. And we're looking for those levels to base off of then recently, just in November support broke okay., That's when you stop out, don't buy you avoid or again let's say you were in this'cause. You saw it basing that's your signal to stop out okay.

Break some support, especially on a stock up from two to 30 on very dubious news.. Remember AMC is just a meme stock. These movie theaters are gon na fail. The stock isn't gon na be around in a couple of years.

It's a technical play.. It's a Reddit Wall Street. That's meme stock. Okay, Understand that..

Now the point is we are approaching a reclaim of that level just a few days later.. So that to me is very bullish, because that level held for June July August September, seven months 30 held it breaks. And now, within a matter of a few days. It's reclaiming that level..

So you've got seven months of support and then reclaimed in a matter of days.. That tells me the buyers are still in control. Okay. Now, if this thing was under 30 a month later, two months later.

Well then, you're at that point, you're, like it's all over for AMC., That ship has sailed. Meme stocks are over, we give up., But the fact that it reclaimed within a matter of days very, very bullish., And if it can base above 30 that reestablishes that support level.. So you would look to trade above 30 and then your next impediment would be from a technical level would be that 45 resistance level from October November.. So if this again I'm kinda curious drop me a comment below., I don't wan na ha-.

I wish I had a crystal ball: that'd be awesome for trading., But again, if this closes above 30, I think there's a good chance. It could grind back towards that 45 level. That would be your sell signal from a short-term timeframe. Or maybe you start scaling up scaling out and keep a small winner to break through that resistance level..

But that is what we're looking at: we're looking to average those price levels and key off those whole dollar. Half dollar key psychological levels., So now it takes time it takes repetition.. Hopefully I got you a little bit along. Again check out the SteadyTrade Team, there's only so much.

I can pack into a 10 minute video. I like to me, and hopefully this helps you, because I can look at this and it all makes sense to me, but I've been charting every single day for 15 years.. So I can pick out these support and resistance level, but it is a learned skill.. You do have to spend some time.

You do have to do it and I think the best way to learn it is through repetition.. Well, it's like that with anything.. I don't care if you're trying to learn a new language.. I mean if you read one or take one course on learning Spanish, I mean you might be able to order a drink or order a meal, but you're not gon na converse, fluidly.

Okay, If you do you're some sort of savant right, You're, probably gon na, have to take multiple courses and you're, probably gon na have to practice for months or potentially, even years to be able to sit down and converse in a second language. Technical analysis charting very Similar that I think the SteadyTrade Teams is the best way to learn it because everyday twice a day, you're seeing my screen we're doing all this type work. We're practicing that for- might be a foreign language to you. Now we're practicing them every single day.

Check out the SteadyTrade Team and we'll see on the next video.