Applied case study

Support and resistance are not just drawn lines, but areas where supply and demand converge. When they are broken, the balance of power reverses.
🔹 Practical Case: Stock: Saudi Aramco Period: Last 3 months Level: Support at 28.50 SAR Event: Support broke downwards with increased trading volume.
🔹 Analysis: Before the break: Traders were buying at 28.50, anticipating a rebound. After the break: Previous buyers started selling to minimize losses, while new sellers entered with confidence. Result: The stock fell to 27.80 SAR within a few sessions.
🔹 Lessons Learned: A strong support break with increased trading volume = an early exit signal. Don't bet on a "certain bounce" after the break. Always place your stop loss directly below the support level.
🔹 Conclusion: Support and resistance are not just theoretical concepts; they are practical keys to understanding market behavior.