Support and Resistance Metals Analysis & Support and Resistance Trading Signals

Support & Resistance is one of the widely used concepts in metals trading. Most traders draw horizontal lines to explain these levels.

There is also an indicator used to draw these levels automatically and indicate the resistance & support levels.

When it comes to these levels metals price can either bounce off these areas or break these areas.

If a resistance level is broken metals price will move higher and the resistance level will turn to a support.

If a support level is broken metals price will move lower and this level will turn to a resistance.

Metals Price where the majority of investors believe that metals prices will move higher, while resistance levels indicate the metals price at which a majority of investors feel metals prices will move lower.

Once metals price has broken through a support or a resistance then it is likely that the metals price will continue heading in that particular direction until it gets to the next support or resistance level.

The more often a support or resistance level is tested or is touched by the metals price and bounces, the more major that particular level becomes.

Metal Trading Analysis & Generating Trading Signals

These levels are calculated a metals trend lines method.

Upward Metal Trading Trend

In an upwards metals trend the resistance and support will generally head upward

Upwards Metals Trading Trend

Downwards Metal Trading Trend

In a downward metals trend the resistance & support will generally head downwards

Downwards Metals Trading Trend