Price is between support and resistance. Many investors find it cheap near support and expensive near resistance. A break upward will be a buy signal, whereas a break downward will be a sell signal.
When the stock price is between a support level and a resistance level, without being particularly near either of them, it does not signal anything about the future stock price.
If the price is falling towards support, it indicates that it will reverse and rise again. This is especially the case if it is a rising trend.
If the price is rising towards resistance, it indicates that it will reverse and fall back again. This is especially the case if it is a falling trend.
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Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer.
The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.