Price in support/resistance channel

The price is in a narrow channel between support and resistance. A break upward will be a buy signal, while a break downward will be a sell signal.

Price in support/resistance channelWhen the price is in an area where it has reversed many times before and turnover has been high, it is in a support/resistance channel. The price will often continue this sideways development for some time. This easily builds up tension in the stock. When the price breaks out of the channel, it can trigger a powerful buy or sell signal.

These situations will often cause the formation of a rectangle pattern in the chart. Especially breaks upward from such formations have proven to be reliable buy signals.

Stocks withPrice in support/resistance channel

Apple Inc.
Chevron Corporation
 


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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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