In technical analysis when a stock has broken resistance is that indicative that the price per share may rise, even if short term?
If you can help with any websites that lists’ stocks support and resisantance levels that be great!
Thanks
Related posts:
- Does anyone use technical analysis to invest in US stock market?
- Using stock technical analysis, what are your 3 most important metrics used to determine when to sell?
- What is the best free forex tracking program for technical analysis?
- What is the best free stock technical analysis program?
- Does Technical analysis work to make money in the Stock Market?
- Technical Analysis Indicators
- What out of technical analysis or fundamental analysis is more important/efficient when day-trading markets?
- What are some basic differences between technical analysis and fundamental analysis?
- What does long and short mean in swing trading? See details….?
- Technical Or Fundamental Analysis For ETF
Breaking a resistance level is a sign that stocks will have a much higher chance to continue moving upwards.
However, you should be wary to watch the volume, and other indicators, to watch out for "fakeouts" caused by market movers who know the resistance levels, and will purposely push the price up past the level to fish for investors who will buy immediately after that.
If volume is high on a resistance level break, then the odds are it is genuine, and a good buy. Also watch for some indicators such as the RSI; the RSI is really good in judging a resistance break – if the RSI breaks its own resistance level, then that is another confirmation.
I don’t know any sites that list support and resistance specifically for individual stocks, but:
Here is a tutorial on finding support and resistance:
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:support_and_resistan
Here is a site that screens stocks that are facing an established horizontal support/resistance line:
http://finviz.com/screener.ashx?v=210&s=ta_p_horizontal
The same thing but for trendline support/resistance:
http://finviz.com/screener.ashx?v=210&s=ta_p_tlresistance
http://finviz.com/screener.ashx?v=210&s=ta_p_tlsupport
Breaking the level of resistance is a indeed a signal that the stock will go higher.
Mark
First, take 6 months in learning about stocks and trying it out with fake money in a stimulation web site like Yahoo! Finance.
http://www.finance.yahoo.com
The stocks you want to focus on is consumer staples, consumer discretionary, and healthcare. These are DEFENSIVE stocks that will survive through good and bad times. Most of my positions are in these stocks. Some names include 3M, Procter & Gamble, Kimberly Clark, Exxon Mobil, Walmart, Costco. Everybody’s got to eat and wipe their butts regardless of the state of economy. Many of these companies survived through the Great Depression.
That’s the benefits. You can sleep at night knowing your money is doing well. There are NO guarantees that you won’t lose money. It’s just that these stocks are the best. They pay good dividends too.
If you’re new to stocks, DON’T DAY TRADE. You’ll a rookie in a world of professionals. I tried day-trading with Citigroup and AIG when they were a little bit over $1. I had some luck at first, making about $30 a day but I was way over my head. My luck didn’t last long and I had to rethink my strategy.
Besides you can’t do much with $100 in the market. Day trading involves A LOT of commissions to the broker. With all the commissions deducted from each trade, you’ll be lucky if you only lose half your money.
I would just day trade using Yahoo! Finance. Open a stimulation account, give yourself $100 worth of fake money and play it in the stimulation format. You’ll see what I mean by losing money every easily.
Good luck.