about Previous resistances…
See above chart of Divis Labs…You can see that currently Divis labs is moving up…its in uptrend but May 22, April 22 and before that dec 21…all those Tops are there. These people who bought at those levels are waiting for price to come to their buy levels, once price comes to their levels they will start selling and hence your price will go down…That means these earlier buyers will not allow your stock price to move ahead and they will offer resistances for price advance.
As against this see this see this Trent chart…
Here the sky is clear…No resistances for price increase…So it can go up easily as no previous sellers are there…
Now most important thing is the older these resistances are, they become more in-effective…so Beyond 1-2 years it doesn’t matter even if there are resistances , because then old resistances don’t influence the price. .Because most investors or traders don’t hold stocks so long for their price to come back,Many ppl mostly sell at loss and get rid of losing stcoks.
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