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March 09 2016

Commentary by David Fuller

Email of the day 2

On overhead resistance:

What do you mean by overhead resistance?

David Fuller's view

It is prior trading which proved to be a top area. It represents potential resistance for a return rally: 1) because stale bulls may want to sell when the market returns to that region; 2) buyers will often become more cautious in a region which provided previous resistance, at least until it is overcome.

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