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View Full Version : Resistance becoming Support doesn't make sense to me



agvamihuuzo
08-19-2015,
A chart hits a level multiple times but can't break above it - that's resistance - it's saying this stock doesn't deserve to be higher than that. If the price does break above it, then it's telling me the stock is lucky to be above that level, not that that level will now act as support and should hold as a pivot point where it might not trade below anymore.
Especially if the resistance before becoming support had many many hits on it - this means many times that the price shouldn't be above there and thus even more lucky for the stock to ever be traded above it, not that having so many prior hits on it as resistance now makes it an even stronger support level.

And vice versa for Support becoming Resistance.

Please enlighten, as this makes zero sense to me.
thanks.