Penny Stock Millionaire Reveals Secrets of Trading – Resistance Levels

We talked about support levels in
previous video and how to profit from them in our position your trades around
them. Now I want to talk about the opposite of
a support level which is a resistance level and just like in the previous
video since penny stocks are very thinly traded and typically traded by retail
investors, less sophisticated investors, they’re more likely to put their buying
and selling orders at threshold prices around number prices such as two dollars,
three dollars, two dollars and fifty cents that sort of thing and when you’re dealing
with very thinly traded stocks such as penny stocks; when the shares move
towards that threshold price the buying increase of the increase in the buying
or selling is going to actually keep the stock bound within those prices. So if
there’s a resistance level at four dollars and every time the stock gets up
to three dollars 95 cents, three dollars 99 cents, the selling demand
increases. It’s going to keep cap on how far out or how high that price is going to go. The way in which resistance levels are
going to benefit you is that you have to be aware of them, of the potential for
them to appear on the trading chart or in the trading activity. Iif this
stock has a lot of trouble breaking through a resistance level it may never
get to that level or break above it which makes it potentially good time for you
to unload your shares if you don’t think that the resistance level can be broken. However, in cases where the resistance is
broken a stock trying to get through four dollars or three dollars
continually and it eventually does breakthrough that’s typically the
beginning of a longer-term bullish up trend for the stock. This is what we’re talking
about when we talk about breakouts, you want a stock that breaks through its resistance level and that’s representing that’s going to make
a long run higher from that point going forward. Now the fun thing with resistance and
support levels is that they flip, if there is a resistance level and the stock
breaks through that up to higher prices. Then typically that resistance level becomes
a support level so if the stock is making continuous runs towards three
dollars and fifty cents and every time it drops back down towards three dollars,
and takes another around 350 and drops back down. Eventually if it does break through 350,
you don’t go on a long up trend from that point because it’s a breakout is moving
more aggressively higher from all the buying demand. At the same time that
level 350 then becomes a support level where the stock then reverses and starts
coming back down, it may bounce off of that price which it took so long to
break through the first place and now it bounces off of there there and doesn’t go
below that again. I often say that in the reports we put it to subscribers at that if the stock does break out in this resistance level, break
through the resistance level that resistance will become a support level
going forward and the stock will never see such low prices again for a long
time. I hope that makes sense I hope it’s helpful, we want to help you guys out to make money
from trading penny stocks. This is where you learn how to do all of that, my team
and I, we believe in ethics, integrity and honesty and we lead with that and its
apparent in everything we do. If you have any questions at all you want to get in
touch with me or my team members just reach out, put some comments in the
comment fields immediately below this video and we’ll get back to you right
away. Thank you so much you guys are awesome.
Take care!!

3 thoughts on “Penny Stock Millionaire Reveals Secrets of Trading – Resistance Levels

  1. Hey Peter, great video by the way! I just have a couple questions, so when a stock does breakout, what would be some good indicators you use that show strength and that it will continue in a bullish direction ? And do you recommend buying them at the price closest to the previous resistance or breakout price?

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