Support at the Lower Float Channel Line

Support at the Lower Float Channel Line
(Also known as Overhead Support)
Many of the biggest moves start with a deceptive sell-off down to the lower float channel line.  This is one of the best places to find excellent entry points with the best risk to reward money management.  The theory here is that stocks that have gone sideways long enough to come down and just 'kiss' their lower float channel line are in a distribution/re-accumulation phase.  This is where investors who bought lower are selling to those at the new higher level.  If the new ownership above the 'kiss' are holding their shares tightly then the price often moves higher very quickly.