{"id":472,"date":"2004-06-24T18:01:54","date_gmt":"2004-06-24T23:01:54","guid":{"rendered":"http:\/\/selfinvestors.com\/tradingstocks\/mail-bag\/overhead-supply\/"},"modified":"2004-06-24T18:01:54","modified_gmt":"2004-06-24T23:01:54","slug":"overhead-supply","status":"publish","type":"post","link":"https:\/\/selfinvestors.com\/tradingstocks\/mail-bag\/overhead-supply\/","title":{"rendered":"Overhead Supply"},"content":{"rendered":"<p><strong>Question<\/strong>:<\/p>\n<p><font face=\"Arial\">When you buy a breakout such as you did with EASI, what are your concerns about overhead supply? I noticed this stock will be hitting the December high of 61.93 fairly soon. How will you handle this? <\/font><\/p>\n<p><strong>My Response<\/strong>:<\/p>\n<p><font face=\"Arial\">Overhead supply is of some concern, but not much in this case.&nbsp; The December high is the all time high, which may offer some resistance in the form of another handle like formation (pull back on lighter volume).&nbsp; Much more important of a resistance level is 60.&nbsp; Multiples of 5 and 10 are often sources of resistance for higher priced stocks.&nbsp; For example, investors rarely say sell my position when it hits 61.93.&nbsp; They will set a sell or tell the broker to sell at 60.&nbsp; This is exactly what we are seeing now.&nbsp; Notice I chose a breakout point for this stock quite low in the right side?&nbsp; Sometimes it&#8217;s a good idea to purchase lower in the right side, because your purchase point is much closer to major support which allows you to stay in the stock longer w\/out getting stopped out of the position.&nbsp; How do you know which stocks to purchase lower in the in the right side?&nbsp; Depends on volume, price action and instinct (based on viewing many charts)&#8230; this is where experience comes into play<\/font><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Question: When you buy a breakout such as you did with EASI, what are your concerns about overhead supply? I noticed this stock will be hitting the December high of 61.93 fairly soon. How will you handle this? My Response: Overhead supply is of some concern, but not much in this case.&nbsp; The December high &hellip; <a href=\"https:\/\/selfinvestors.com\/tradingstocks\/mail-bag\/overhead-supply\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">Overhead Supply<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-472","post","type-post","status-publish","format-standard","hentry","category-mail-bag"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/posts\/472","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/comments?post=472"}],"version-history":[{"count":0,"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/posts\/472\/revisions"}],"wp:attachment":[{"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/media?parent=472"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/categories?post=472"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/selfinvestors.com\/tradingstocks\/wp-json\/wp\/v2\/tags?post=472"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}