Videos
What is Overhead Supply?

It is an area of resistance where there is more supply than you think.

Example: If a stock is trading at $50 per share and has done a lot of trading at this level, eventually it will dip back down and may hit $20 per share. Many of the traders at the $50 level are holding onto the stock in order to break even. This is not a good mentality to have.

If the shareholders didn’t get out at the $48 price point then they are waiting for it to come back to that price level.

As the stock starts trending back up, there is an overhead supply area. When the stock hits it, it pushes the stock down further.

In sum, overhead supply = an area of resistance that pushes the stock down further as the stock climbs back up from a dip.

#stocks #supplywithinstocks #stockdips #supplyresistance #oversupply #overheadsupply

Posted at: https://tradersfly.com/blog/learn-about-overhead-supply-within-stocks/

???? GET MY FREEBIES

Freebies

???? SUBMIT A VOICE QUESTION

Question – Hungry for Returns

???? START HERE: FOR NEW TRADERS

Start Here – for New Traders

???? START HERE: OPTION TRADERS

Start Here – Option Traders

???? MY CHARTING TOOLS + BROKERS

tools

???? MY COMPUTER EQUIPMENT

Resources: Computer Gear

???? GET THE NEWSLETTER

YouTube Newsletter Signup

???? SEE OUR MEMBERSHIP PLANS
https://tradersfly.com/go/members/

???? STOCK TRADING COURSES

See All Our Trading Courses

???? STOCK TRADING BOOKS:

Our Stock Trading Books

⚽ GET PRIVATE COACHING

Coaching for Stock Traders

???? WEBSITES:

Home Version 2.0

Home Page

Homepage 2.0

Home

Home

???? SOCIAL MEDIA:
https://tradersfly.com/go/twitter/
https://tradersfly.com/go/facebook/

⚡ SUBSCRIBE TO OUR YOUTUBE CHANNEL
https://tradersfly.com/go/sub/

???? MY YOUTUBE CHANNELS:
TradersFly: https://backstageincome.com/go/youtube-tradersfly/
BackstageIncome: https://backstageincome.com/go/youtube-bsi/

???? ABOUT TRADERSFLY
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.

Stock trading can be a brutal industry, especially if you are new. Watch my free educational training videos to avoid making big mistakes and just to continue to get better.

Stock trading and investing is a long journey – it doesn’t happen overnight. If you are interested to share some insight or contribute to the community we’d love to have you subscribe and join us!

Articles You May Like

How a Butterfly Makes You Money – (Options Strategy Basics)
UK business and unions demand scrapping of planned bonfire of EU rules
Stocks making the biggest moves midday: Disney, Carvana, Diamondback Energy and more
Stocks making the biggest moves premarket: Deere, HP, Nordstrom and others
Ratings agencies say higher ed is pressured