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The concepts of "support and resistance" >

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trader53 Member Level  Thursday, 02/23/12 03:25:21 AM
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The concepts of "support and resistance" >

The concepts of support and resistance are among the most important in technical analysis. They represent psychological barriers that can impede a stock's move, but can also be utilized to anticipate new information. When making a visual assessment of a stock chart, a solid understanding of support and resistance can help investors determine entry and exit points for profitable trading.

http://www.stockscores.com/basics.asp?essayid=4

Support

Simply, support is a floor price that the market for a stock has shown a hesitation to break through in the past. The more times a stock touches this floor price, the stronger the support is said to be. It can be defined by a low point in trading, or by a period of price consolidation.





Example:

SUGO




http://www.stockscores.com/quickreport.asp?ticker=sugo

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