Page 1189 - How to Make Money in Stocks Trilogy

172 HOW TO MAKE MONEY IN STOCKS—GETTING STARTED

Former Area of Resistance Becomes Area of Support

Resistance Becomes Support Resistance Price
Stratasys Weekly Chart 80
70
Resistance
Support 60
Resistance 50
Support 46
42
38
34
Former area of resistance
becomes support 30
28
Positive to see past “ceiling” (resistance) 26
Failed to find support at become new “floor” (support). Like building 24
past resistance area stepping stones for stock to climb higher. 22
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Stepping stones: Watch to see if a prior area of resistance becomes an area of support.
That can help you hold a stock as it climbs higher, one step at a time.

Next up: Let’s use the 3 concepts we just learned to spot the telltale
patterns that launch big price moves.