Break upward through resistance

A break upward through resistance is a buy signal. This is especially true if volume is also increasing. The sellers who used to be at this level are gone, but there is still buy pressure in the stock.

Break up through resistanceA stock that recently broke through a resistance level is expected to continue rising. Buying such stocks allows the investor to enter the stock early in a rising phase. If the stock has risen significantly since the break, a better price can be achieved by waiting for a reaction back.

Please note that stocks in falling trends often give false buy signals on breaks upward through resistance. When buying such stocks, a long term and strong resistance level should be broken, and the break should be accompanied by increasing volume and positive volume development.

Investtech Research

+5.1pp

The Nordic markets 1996-2018, a total of 43,367 buy signals.
Stocks with buy signal after break upwards through resistance have on average continued to rise and risen more than benchmark in the following months. Annualised return has been 5.1 percentage points better than benchmark
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Stocks withBreak upward through resistance

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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.

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