Friday, December 4, 2015

PBMD Chart

This stock went up nicely on Thursday, but its movement was stopped by a pretty strong resistance area around $1.50 (R1). If the stock manages to breach $1.50, traders can expect further resistance at $1.75 (R2) and then at $2.25 (R3). The bounce down from $1.50 yesterday should strengthen one’s belief in technical analysis! If traders are aware of key resistance and support levels, they can take profits in an informative manner when the stock retraces/bounces off a key level.