Inside this article you can find the companies that today showed the Resistance Breakout Chart Patterns. In addition, the companies shown here have a particular chart conformation that increases the probability of the trend continuing.
A resistance is an area where price growth has stopped once or several times, without ever being able to overcome it. We can define it as a real obstacle.
So if the company is able to overcome (breakout) this obstacle, after being stopped previously, the chances of the price continuing to rise increase. Furthermore, prices are more likely to continue rising, the stronger the underlying positive trend.
How do I know if it’s a false breakout?
The breakout is defined as “false” when the positive trend that supported the price growth reverses the direction (going from positive to negative). To understand when this event occurs, there is a red half-line in the chart that indicates the level below which the positive trend can be considered concluded.
A few negative days are not enough to call it a “false” breakout because often the cause is natural temporary volatility (given by the retest of the signal level or profit taking or general market crash).
The information in this article is for informational purposes only and does not constitute investment advice.
Sorrento Therapeutics Inc (SRNE)
Vir Biotechnology Inc (VIR)
IGM Biosciences Inc (IGMS)
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