Las Vegas Sands LVS important support levels to know

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Las Vegas Sands LVS

I'd like to show you how to find "Hidden support and resistance" that you would not otherwise be able to see from just a plain price and volume chart. The key here is to look at the price range around previous earnings reports.

What I have found is that the 3 days around earnings reports are big numbers to remember and that the market has a "memory" for. Traders and analysts and portfolio managers remember these prices and can leave orders standing at those levels far into the future (as much as 3 months or more). The one truism in stocks is that there are only 4 important days a year and those are when earnings are released, which is also when the company revises or updates its forecast for the coming quarter or year. So, it tends to be very important. If a stock moves away from an earnings report, it will still be important if it revisits that level again.

So, here is what you do: Form a triangle around the lowest low to the highest high from the day before earnings to the day after earnings . The mid point of this triangle will be important support or resistance for the following quarter, but can have importance even after that. See in this chart too, there is a great example in February this year.

I can't say enough how essential it is to know these price levels as a technical analyst, trader or portfolio manager. Once everyone has this information, it will become less valuable but for NOW, while it is barely used as an indicator or a system for generating support and resistance , it will be powerful and you can see how it is from this chart.

For a trade, I will go short LVS going under 78 if it can spend an entire day under 78. I might consider going long here at 79.47 with a stop at 77.80, risking 1.67 points to make a possible 3.53 move to 83 (the midpoint from the high at 88 to the earnings support at 78).

Best regards,

Tim 10:23AM EST Tuesday, May 6, 2014
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