My first view of a stock is a 10 year weekly chart and even I Look more back in the time for establish old and relevant support and resistance levels.
Then I do a zoom in and I focus in the action of the last 2 or 4 Years.
Then I look my daily chart and 4-Hrs Chart too, this is called Top down Analysis with multiple time frame.
Thanks to this,
I identify a key resistance level around 50.00 and 51.00, and this level was very important in 2001 and then in 2007-2008,
because in this 2 occasions the price hit that level but could not overcome them.
This sound like a too old history but is key for this idea
then in 2014 the price hit and broke the resistance level of 50.00, and it reached up to 69.00, for then in 2015 fall below 50.00 again,
then again at the end of 2016 the price hit and broke the 50.00 level, and this time the price stayed above 50.00,
but without exceeding the 69.00 reached in 2014
and that's how we got to our days,
where is the price action now because if look the (Red Arrows) that I use to show the resistance,
you can observe that the price broke the high that marked in 2014 (69.00) and that now is above 69.00
Look the (Blue Arrow) that show how resistance is now support
That is all
I make myself understand
Then I do a zoom in and I focus in the action of the last 2 or 4 Years.
Then I look my daily chart and 4-Hrs Chart too, this is called Top down Analysis with multiple time frame.
Thanks to this,
I identify a key resistance level around 50.00 and 51.00, and this level was very important in 2001 and then in 2007-2008,
because in this 2 occasions the price hit that level but could not overcome them.
This sound like a too old history but is key for this idea
then in 2014 the price hit and broke the resistance level of 50.00, and it reached up to 69.00, for then in 2015 fall below 50.00 again,
then again at the end of 2016 the price hit and broke the 50.00 level, and this time the price stayed above 50.00,
but without exceeding the 69.00 reached in 2014
and that's how we got to our days,
where is the price action now because if look the (Red Arrows) that I use to show the resistance,
you can observe that the price broke the high that marked in 2014 (69.00) and that now is above 69.00
Look the (Blue Arrow) that show how resistance is now support
That is all
I make myself understand