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Floors and Ceilings

The phrase, "Floors and Ceilings" refers to terms used in stock market technical analysis, not the actual floors and ceilings found in houses.

 

Here is the 3-month chart of the 10 Year Treasury Note current as of 5/18/07: 10 Year T-Note

 

If you are familiar with stocks and stock charts, you know that the prices of stocks tend to fluctuate between specific ranges. Over a period of time it is easy to see what traders call a floor and a ceiling. For a stock to break through the floor or push above ceiling, it generally needs volume. It's the volume that is the sustaining fuel for the stock in continuing into uncharted territory.

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