Quote:
Originally Posted by lewdog
Sure and then rebounded. Support showing at all time low and reversing trend. At least in short term. Could be quick trade (few days to few months).
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That's not support. Support and resistance is based on historical prices that provide support and resistance.
In the example above (Green is support red is resistance) if a stock goes down to 33, you can, in theory, expect support and get a turnaround. If it blows through it, support becomes resistance and you'll have to have a pretty substantial move to get back above the price level.
I don't know the rules to actually exercise the technical analysis on any given stock, but in the grains, you can lean pretty hard on support and resistance.