Support and Resistance Stock Analysis & Support and Resistance Trading Signals

Support & Resistance is one of the widely used concepts in stock trading. Most traders plot horizontal lines to show these areas.

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

When it comes to these levels stocks price can either bounce off these regions or break out through these regions.

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

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

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

Once stocks price has broken through a support or a resistance then it is likely that the stocks price will continue to move in that specific direction until such a time when it gets to the next support or resistance zone.

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

Stocks Trading Analysis & Generating Trading Signals

These levels are calculated a stock trend lines method.

Upwards Stocks Trading Trend

In an upwards stock trend the resistance & support will generally head upward

Upward Stock Trading Trend

Downward Stocks Trading Trend

In a downward stock trend the resistance and support will generally head downwards

Downward Stock Trading Trend