| ESU9 For 07/29/2009  |
How To Use |
| Symbol | R1 | R2 | Pivot | S1 | S2 | |
| ESU9 | 983.00 | 990.00 | 974.50 | 967.50 | 959.00 | |
Support
A support level is the price at which buyers are expected to enter the market in sufficient numbers to take control from sellers.
The market has a memory. When price falls to a new Low and then rallies, buyers who missed out on the first trough will be inclined to buy if price returns to that level. Afraid of missing out for a second time, they may enter the market in sufficient numbers to take control from sellers. The result is a rally, reinforcing perceptions that price is unlikely to fall further and creating a support level.
Resistance
A resistance level is the price level at which sellers are expected to enter the market in sufficient numbers to take control from buyers.
When price makes a new High and then retreats, sellers who missed the previous peak will be inclined to sell when price returns to that level. Afraid of missing out a second time, they may enter the market in numbers sufficient to overwhelm buyers. The resulting correction will reinforce market perceptions that price is unlikely to move higher and establish a resistance level.
