ivanlim wrote:Hi guys. I was wondering,why does a previous low act as a support level? What's the reason behind it?
Rom wrote:I also have a S/R question. When prices stall at a support level, what to look for before going long?
Carll wrote:Price has probed this local resistance zone underneath 1.3800 since the beginning of the month.
3 attempts were made to penetrate the level before successfully pushing through today.
This level also represents last weeks high, so it adds a little extra interest to the action. If this latest mini leg of the bull move attracts more longs, then traders will be eyeballing this previous resistance zone with intense interest to see if it acts as solid support & attracts further longs.
Quite often these flip zones (resistance becomes support) are important fulcrum levels for gauging the each-way strength of a move & these areas provide likely opportunities to re-engage longs if you're flat or looking to add more bets to your core position.
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