The above chart showing longer term resistance reminds me of a very good psychology lesson and I'll try to find the exact wording but in the meantime.
Humans hate to be wrong. They buy the stock goes down and they will hold all the way down and back up again, and 9 times out of 10 sell when it gets back to break even. It makes no sense because if it's going up why would you sell? But we do it because we convince ourselves that we were right to hold and therefore not "lose" but we hate that stock now and we're not taking the risk it will tank again. I bet you've all done it, I know I have.
So resistance is more easily explained IMO in that there are many "old hands" getting out hence why it doesn't just bust through and keep going.
It was Weinstein again who mentiones this, and reckons it takes 2 years approx for those holders at that particular price level to forget the pain. Important note IMO for DML at this point.
