You could find plenty of definitions of what ‘technical analysis’ means on the internet or in various books but to me it is simply the study of market action through use of charts for the purpose of attempting to forecast where the stock price might go in the future. Basically it’s the study of what humans did with a particular stock when it reached certain price levels in the past.
Let’s take a look at a few more companies for some areas of support where the sellers appear to dry up, and buyers come back in and take their place:
Aurora Cannabis (TSXV:ACB; OTC:ACBFF)
Looking at Aurora we can see that the stock clearly has an issue with the $2.80 region but is very stable when it came to the $2 and $2.20 areas where buyers come back into the name in a big way. A trader might look for an opportunity to buy in the area of support and sell into the area of resistance.
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