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Break downward through support

A break downward through support is a sell signal. Especially if volume is also increasing. The buyers who used to be at this level are gone, but there is still sales pressure in the stock.

Break down through supportA stock that recently broke downwards through a support level is expected to continue to fall. Selling or not buying such stocks help the investor avoid the continued fall. If the stock has fallen significantly since the break, a better price can be achieved by waiting for a reaction back.

Please note that stocks in rising trends often trigger false sell signals on breaks downward through support. Investors who own such stocks should normally see a break downward through a long term, strong support level, preferably on high volume, before selling.

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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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