I really should give a better answer than the one I did above, so here goes.

There are a bunch of reasons a stock can start trading above resistance or below support. Earnings could be better than expected, industry or sector growth, favorable government policy, or, inversely, unfavorable government policy, industry or sector decline, earnings worse than expected. If a move is based on some type of fundamentals, than it is likely to be stronger because the value of the company, and therefore its stock, has increased or decreased.

The other part to it is that a move doesn’t have to be based on anything really other than a chart pattern. If a stock is hitting a support or resistance line enough and/or breaks it, there are enough traders out there trading based on technical analysis to cause the stock to go into a trend. So a stock that is trending or showing trading signals that technical traders use, whether there is any real reason for growth or not, will be in higher demand and therefore more valuable thus causing an increase in price.

If the move is based on little fundamental reasoning then the stock is likely to wind up overbought or oversold, and eventually go back below resistance or above support.

But basically for whatever reason the parents have changed their mind and decided to let the kid hang out upstairs or get locked in the basement. Basically though the kid is just subject to however the parents (traders) feel, whether the parent’s reasoning is based on the fact that the kid did or didn’t do something, or the parents are just doing what they were taught, either way the outcome is the sam