Updated: Jan 27, 2022
(No 1 on chart)
This is where the price is struggling to go below, there are more buyers than sellers that makes it “Bullish”.
We use levels of support for a buy opportunity or to cut losses if a stock goes below. If a stock moves below the support line it means it will most probably move further down to the next support.
(No 2 on chart)
This is where the price of the stock is struggling to move above, there are more sellers than buyers, this makes it “Bearish”.
Use resistance levels as a sell opportunity or cut losses on a short position. Shorting is when you make profit from stocks moving down.
Change in Support & Resistance
(No 3-4 on chart)
If either is broken this can create a new level of support or resistance.
This is a good example of what it will look like.
Bullish – The stock price is going up, getting more expensive due to more buyers than sellers.
Bearish – The stock is moving down, price decreases due to more sellers than buyers.
Supplying – Sellers market
Demand – Buyers market