Replies to post #60759 on *** ALL THINGS MONEY >>>> ATM ***

[**D*A**]

This isn't quite the same as ISNS, not even close. It is an example of what happens when a stock tests that support level too many times. FWIW: the BIDU chart is in a similar stage as IBM was before support broke thru. A descending wedge, which means the bounces got lower on each touch of support.

[Agent13]

Good Morning ATM

Thanks DA for these insightful post yesterday. It is so important to understand about the battle of bulls and bears, stop placements, and so on.

Warning though, that upper trendline is to be respected. It's a bearish pattern, but just like the bulls, the bears put stops in too. Right above that trend line. If it breaks to the topside, it usually gets an over reaction and the bears lose that round.

My observation is that the more often a support level is re-tested, the less likely it is to hold. The people who are buying at a certain level, will eventually get what they want. If the price doesn't move up, they will quit buying there, and worse yet, their stops below that support level will help fuel the drop.

After all this is why technical analysis work!