Technical Analysis
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Understanding the concept and significance of support and resistance is important for profitable stock trading. Support and resistance levels represent pauses in the trend when investors reconsider all information. By identifying support and resistance points, and acting on breaks in those points, we can plot the future direction of a trend.
Let's look at the chart for ABF between February 2000 and March 2002.
The information contained in this case study is believed to be correct but cannot be guaranteed. Investors should be aware that the value of investments and the income derived from them can fall as well as rise, and past performance is not necessarily a guide to future performance. The information contained in this case study does not constitute a personal recommendation to deal in any particular shares. You should consult a personal advisor to discuss the suitability to your personal circumstances and investment objectives.