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Re: scratchy post# 60861

Sunday, 12/18/2005 12:19:33 AM

Sunday, December 18, 2005 12:19:33 AM

Post# of 286279
Resistance and supply are two terms that are interchangeable. It is the zone where a rallying stock is likely to run into trouble (at least temporarily) and then be turned back. The more times the given resistance area is tested, and again the longer the time period involved, the more important the bullish signal that is given if the resistance zone is eventually overcome.

The area of resistance or the supply is such that there either are no buyers at that price or there are those selling at that price so the supply increases and then the stock moves back down. For those who bought at the area of resistance...some on the boards call these market players "bag-holders" and now they have to either average down or sit and wait for the stock to come back. When the stock does come back to the resistance area; these "bag-holders" sometimes sell merely to break even and walk away. Once resistance is overcome than it becomes support.

GZFX still has a lot of resistance to get through however everything above .0277 is older resitance and not as powerful as many have averaged down from their original buy in or simply have just given up and walked away.

I hope that helps a little bit

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