you stay out of this doubletap ill take care of you later. dont gang up on me when im talking to somebody ... now as for your blueswhatever i think your the one whos being insincere.
i cant make out your use of the word erratic. how is writing erratic? is that the word you mean to use? or did you mean to say irrational or incoherent? those words refer to verbalizations. i think your being insincere saying that the statement i made about overhead resistance is confused or disengenuous. thats not what your thinking. your thinking i make a lot of sense but for some other personal reason you want to deminish the significance of what I said.
the orginal poster raised a question about possible resistance as this thing moves higher and speculated where that resistance might be.
i responded by stating the fact that prior to the most recent selloff there was a sideways top pattern three weeks duration that moved within a ten point trading range.
if your going to look for resistance it would be in the area of a top pattern that broke down and left a lot of longs holding the bag. there can be no argument there. that's basic t/a theory.
after that i made an observation about this stock. over and over and over again traders have been fooled thinking that there will be overhead resistance in bidu when the price climbs back where it was after a selloff. ive seen this thing float right through supposed areas of resistance on low volume leaving shorts dumbfounded.
finally i made the point that it doesnt matter if there is resistance or not in a stock if traders are inclined to believe that resistance exists. its all about psychology. if enough players believe something is true then they are going to act accordingly.
take rumors for example. a rumor may be baseless and yet if enough people believe the rumor its going to affect the trading action either positive or negative as in the case of a false takeover rumor on a depressed stock or a false downgrade rumor on a high flyer.
its the same with belief in overhead resistance. there may not be much actual resistance on the upswing following a decline cause everybody who wanted to sell already sold. but if people think theres resistance theyre going to start selling and shorting at that point.
so i suppose you could say theres two types of resistance. (a) actual overhead supply. and (b) "anticipatory" resistance. they both have the same effect.
this stock has been hot for years and even though there will always be rookies the experienced traders in this stock realize that overhead resistance (supply) is often a phantom that doesnt exist.
youve got the whole underside of that 10 point top structure above $135 that went on for three weeks before it broke. that could be overhead resistance. but then again this thing has a high turnover rate of shares and people have been fooled thinking that theres overhead supply when there aint not cause everybody bailed out already. if traders believe theres resistance on the chart it doesnt matter if theres actually people stuck in overhead positions or not. if people think that resistance is at $135 or whatever they will start selling on their theory and it becomes a self fulfilling prophecy.