Amazon’s stock price has been bouncing around the $180 level, illustrating a classic market dynamic: support turning into resistance and vice versa. This phenomenon, driven by buyer and seller remorse, highlights the importance of key price levels in stock market analysis.
This article delves into the significance of price levels in financial markets, using Nike’s stock price as an example. It explores how past support levels can become future resistance due to the psychological reactions of traders, specifically ‘remorseful sellers’ and ‘buyers’ remorse.’
