I focus mainly on Fundamentals before investing, but I also use Technicals before making the investment

Technical investing is very popular today, especially for options trading

Let me show you a few things you can start looking at

"Support & Resistance Levels"


Technical analysis is using charts to identify trends and patterns from a particular stock

Trends and patterns can identify trading opportunities

Technical analysis is all about statistics from price movement and volume

"Support & Resistance"

Let's begin support & resistance levels

A support level tends to be a price level where buyers come in and the stock has shown its ability to not fall below these levels

Resistance levels are the opposite in which sellers tend to step in and sell at this level

You identify these levels using a stock chart and you will begin to see patterns of where support and resistance levels are

Support levels could be great entry levels for investors

Looking at the $CRWD chart below, you can see the purple lines that I have identified as Support & Resistance levels

Support was around $96.61
Resistance was around $117.82

$CRWD was trading between these levels from mid-June until mid-August

If you have been following me, you will recall when I recommended buying around $97 as the stock was falling towards support

Sure enough it found support and bounced higher

After bouncing off support the stock headed towards resistance and once it broke through prior resistance it has traded aggressively higher, which can be the case once a stock breaks a prior trend either above resistance or below support

I like to identify a "Support" or "Resistance" level once it has been tested 3-4x at least

Let's look at one more chart so you can see at least 2

Here $TDOC in mid-June broke through $182 and retested this level at the end of the month and then again in mid-August

$TDOC you can see also is building a support base around $207 as well

I like to see multiple levels because as a trader, if a stock breaks BELOW a support level, you can see how far they could fall before finding another support level

Resistance looks like $240

You can start practicing this by updating your charts even while watching $NFLX

I look to update the stocks I follow on a weekly basis

Start by following a few stocks and update the support and resistance levels as needed and you will begin to identify the trends

Identifying these levels is the FIRST thing to begin learning about Technical Analysis

Not rocket science, but you can see how it can be extremely useful

I will continue branching deeper into the topic throughout the week

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