PShould I sell my stock when it breaks through lines of support?
This is another “sell signal” for technical analysts. “Support” is a physical trendline drawn on a chart that plots a stock’s historical prices; the line is drawn at the level that has seemingly held up the stock’s price—in other words, the stock’s price repeatedly has touched this level but has not dipped below it. If a stock’s price eventually breaks through this support line, it is a sell signal to technical analysts. For example, assume you purchased a stock at $72 and the price then increased to over $100 and continued to trade in a range of prices that never dipped below $100—thus, support for the stock is $100. Suddenly, the price moves below $100 in a downswing. If you are following trends, this may signal a new trend of the stock and you would sell the stock. If you are not a technical analyst, you would probably not take this as a signal to sell. However, you should take it as a signal that the stock market may know something about the company that you don’t. You should look
