The market-watching mini-drama begins: $ERA fell below the 0.08 level (current price: 0.0801, now back above it).
To prices, round-number levels are just numbers; to us, they’re a big deal.
Seriously though, the more often a price level is tested, the more significant it tends to seem to everyone. But some believe repeated tests can also wear down the buying support there.
The same reading can mean very different things in different market conditions, so don’t blindly apply a one-size-fits-all rule.
#ERA
Make your own decisions about buying and selling—don’t follow the crowd.
To prices, round-number levels are just numbers; to us, they’re a big deal.
Seriously though, the more often a price level is tested, the more significant it tends to seem to everyone. But some believe repeated tests can also wear down the buying support there.
The same reading can mean very different things in different market conditions, so don’t blindly apply a one-size-fits-all rule.
#ERA
Make your own decisions about buying and selling—don’t follow the crowd.