Question of the Week – Quantitative Methods

Before the jump, $100 was the resistance level, as the price
was resisting going that high. It wouldn’t make sense for $110 to be a
resistance level, because the stock has already increased to that point. There
may or may not be an uptrend, but one increase does not make a trend. General
thought would be, though, that the price of $100 is a support level — it is deemed unlikely the stock will
drop below $100 because the resistance has been broken.