If a stock moves beyond its resistance level, it will often go on to make a sustained upward move. If it moves past its support level, it may be about to go on a bear run.
Support and resistance levels are seen as 'stronger' if a stock hits them multiple times. In turn, stocks that break through these 'stronger' barriers are more likely to then go on extended moves.
Stocks aren't the only assets to break beyond support and resistance levels. Any market favoured by technical traders can see breakouts: including commodities and forex.
Support and resistance levels are seen as 'stronger' if a stock hits them multiple times. In turn, stocks that break through these 'stronger' barriers are more likely to then go on extended moves.
Stocks aren't the only assets to break beyond support and resistance levels. Any market favoured by technical traders can see breakouts: including commodities and forex.