There are several technical factors to consider when determining a price objective:

- Measuring techniques from price patterns such as head and shoulders formations.
- The placement of prominent support levels left by reaction lows during previous bull moves. Bear markets often pause here.
- Percent retracements. Maximum objectives would be 100% of the previous bull market.
- Where are the 50 and 66 percent retracements levels. Those levels often provide a lot of support under the market?
- Are there any prominent gaps underneath which could function as support levels?
- Are there any long term trendlines showing below the market?

Stock trading, options trading, and day trading all require that the trader must consider a lot of technical data when pinpointing price targets from price patterns. A general rule is when a slight discrepancy exists between the projected price target and a plainly evident support or resistance level, the trader is safest just adjusting the price target to the level of the support or resistance. As an example, in a downside price measurement, our trader projects a target of 30, and he finds there is a prominent support level at 32. His wisest move is to adjust the target to 32. The most successful traders are the ones who become skillful in blending all the technical tools together.

Andy Swan is co-founder and head trader for DaytradeTeam.com. To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.