Hi Blue,

Floors and ceilings are not randomly generated and in the free markets there is actually a methodical price that gets set on any stock in those markets. It can be based on many things depending on what type of company you are dealing with.

The blue chips and safe harbor stocks are self explanatory. It's the speculative early stage stuff that is fickle. So much can influence the SP of a stock. Also the trading liquidity can have tremendous influence. Thinly traded stocks tend to be very exaggerated in daily price movements. That's when one has to think long term or short term and then either worry about the big stuff or not.

Throw in the exploration phase "nature of the beast", and when evaluating a stock, they are looked at with this in mind wrt gauging present or future value.

-risk/reward ratio?

-not making money,

-strictly want to flip the property

- prove up the resource

- cash on hand

- world base metal price and trend

-latest supply/demand situation and present trend for same

-or W.H.Y...... and you have the markets either hammering the stock, neglecting it, forgetting all about it and what it even does, or loving it based on the latest 43-101, and you got today's "in the wind" price........LOL.

BTW, This is where a company can shine or fail in the PR/dog and pony show dpeartment of promotion.

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More technically though..............That question may be more relative to "support and resistance" levels, and imho more so than high and lows or tops and bottoms. The latter can be at any price level. SP to me is simply the end result of what all the other charts indicate and or follow. IE: a topping out on many of the indicators I would follow simply corresponds with a given price for that time in a stocks trading life. Note in this last 7-8 months since November, we have steadily played the dance under 80 cents and never lower than 43 cents but the indicators which are measured and referenced in %'s stays the same 80% on the charts is still the trigger for our stock when it was 50 cents or 7 dollars. Refer to those TA charts to see how many healthy trading cycles there have been and the beauty of that is that you can trade this or most stocks without having a clue about it's fundamentals most times. Sure the fundamentals are an additional DD tool to base the trading on but in the absence of news and fundamentals. TA will do the trick for swing trading here.

*Same goes for the bottoms. A traditional buy in is usually 20% on most stocks as a rule of thumb. But that is when your look back a year and truly determine where a particular stock has historically bottomed or topped out and then produced a reversal or convergence on indicators using more than one colored trend line( aka crossovers)

I think you have seen this before, but here is a blurb on confleunce and how it relates to support and resistance.

"Confluence Confluence occurs when you take fibonacci projections off of multiple trends and get the same number and strengthens when it corresponds with other technical advents such as gaps, swing high/lows, chart indicators crossovers (MACD, RSI, Stochastics, etc.), trading congestion, etc. The more confluence, the more significant the level. I really take notice when I get two or more fib #s (say a 38.2% and 61.8%) to correspond with a gap in the chart or a swing high. Confluence is very powerful as it combines multiple technical analysis techniques to arrive at the same conclusion, and should be relied on accordingly IMHO"

Lastly, there is the simple influence of "psychological price" levels. Those being even numbers that people simply have on the top of their minds and those are usually incremental. (Like today's 50 cents) For instance there may be a bunch of speculative investors out there who took a big flyer on ISM when it hit that new yr low of .43 and said let it ride. However they also said that as it climbs up I will set a stop loss or sell the stock should it fall back below 50 cents. Ask your self why they set 50 cents?? (Note the support that has rolled in since blipping down to 50 cents.........)

How about the general population and it's love hate relationship with gas at $1.00 a liter? Below it's "cheap" and above it's a gouge.....LOL

In the end, a break out or collapse though a ceiling or floor is very significant and usally signals a new phase in the company's progress of life cycle. Short term will look at the daily monthly high and lows, but on the longer term you are looking at the more general traditional levels. As you saw this stock went to sleep and simply fell off the earth after it cracked a buck late last year. it's taken a big dirt nap based on many things. Influences that were controllably by the company and some that were not. We are off the radar, starving for news and in a SP groove simply trading based on what side of the bed a big holder gets out of with each day.