Support Became Resistance!!

1. Juli 2023

Hi mates, sharing daily chart of Verizon communications as we can see that price level of 36 was acted a good support earlier after a sharp fall in it and after finished a bottom which is looking a rounding bottom pattern with higher number of buying volumes which indicates that change of hands according to the high volume on top or bottom and when the price tried to go up it got regular rejections from that support levels of 36 which became resistance for it now, So we can say it is example when a support turned in to resistance or resistance can turn out in support when after price break that resistance and sustain above that specific levels.

Apart of this I observed on technical grounds that it is giving a breakout now from that resistance and on breakout happened on falling resistance too with god volumes built up so it is looking a good long opportunity it but I am sharing this for learning purpose like for the importance of support and resistance in technical analysis so for that reason not sharing targets nor mentioning the stop loss.

Long support and Volumes-:
According to mine observation about volumes in trading that higher volumes indicates the change of proprietorship between institutions and retails usually high volumes on highest or lower prices levels in any security is a signal of change of hands. like the image I am sharing below that that big volumes generated on the lowest price this time too with matching the previous long support which is looking the pre identification of support (demand zone) and the big volumes happened.




KINDLY NOTE-: This is not and trade or investment advice. This idea is meant for learning.




Regards-: Amit (AR)