Penny stocks support and resistance
Support and resistance are vital technical indicators in day trading penny stocks. Discover the secrets to using them inside. While support can form at any price for any stock, with penny stocks it’s much more common for supports to form at round number prices. Investors generally buy or sell at threshold levels, such as $4.00 or $1.50, as opposed to $4.12 or $1.44. Because many investors buy at these round number prices, Support and Resistance Penny Stock Chart Pattern. Support and resistance lines are essential for any trader. They help investors identify points of historical strength and weakness. This is significant because it allows traders to find the opportune time to get in and out of stocks. Support lines are drawn when a stock bounces off of a certain