Another Principle Of Technical Analysis Specifies That Support Can Turn Into Resistance And Vice Versa. Once The Price Breaks Below A Support Level, The Broken Support Level Can Become Resistance. The Break of Support Signals That the Sellers Have Overcome the Buyers. Therefore, If The Price Returns To This Level, There Is Likely To Be An Increase In Selling, And Hence Resistance.
The Other Side Of The Coin Is Resistance Turning Into Support. As The Price Advances Above Resistance, It Signals Changes In Supply And Demand. The Breakout Above Resistance Proves That The Buyers Have Stunned The Sellers. If The Price Returns To This Level, There Is Likely To Be Fresh Buying And Support Will Be Found.