Duke energy is another stock where levels are now pivotal to any future progress higher, and much as for GE, it is the volume point of control and resistance overhead which are the defining the technical picture and likely to continue to do so for the near future on the daily chart.
In this case it is the cluster of two regions at $90 per share which are helping to pin the stock to a very tight trading range around the volume point of control below. As we can see from the chart, one of these levels is blue and much wider than the second which is red and less strong. However, acting in tandem this is an immensely strong ceiling of resistance which has already been tested several times over the last few weeks, as each effort to rally is repulsed. The accumulation and distribution indicator for NinjaTrader delivers these levels automatically increasing them visually in width each time a level is tested and duly holds firm.
Below at $89.20 sits the volume point of control confirming the heaviest concentration of transacted volume with further deep regions below and above and presenting significant barriers to any move higher or lower. If this stock is to rally further, then the ceiling of resistance at $90 has to be breached and on excellent volume. If it is, the door will then be open to a sustained move through $91.50 and beyond, supported by the trend monitor indicator which remains firmly bullish.
By Anna Coulling
Charts from NinjaTrader and trading indicators from Quantum Trading
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