Lower volume today (2.5 Million) while the stock price went down by 7.14% from 1.4c to 1.3c. When the price goes down at a lower volume its a good sign, it seems the short term support level is 1.3c and the short term resistance level is at 1.4c. The stock price oscillating between 1.3c and 1.4C indicates a "consolidation" of the stock price is happening preparing a big move and a breakout. IMO the resistance level of 1.4c will be soon breached.
BREAKING DOWN 'Consolidation'
Periods of consolidation can be found in price charts for any time interval, and these periods can last for days or months. Technical traders look for support and resistance levels in price charts, and traders use those levels to make buy and sell decisions.
The Differences Between Support and Resistance
The upper and lower bounds of the stock's price create the levels of resistance and support within the consolidation. A resistance level is the top end of the price pattern, while the support level is the lower end of the pattern. Once the price of the stock breaks through the identified areas of support or resistance, volatility quickly increases, and so does the opportunity for short-term traders to generate a profit.
Technical traders believe that a breakout above the resistance price means that stock price is increasing further, so the trader buys the stock. On the other hand, a breakout below the support level indicates that the stock price is moving even lower, and the trader sells the stock.
