Square Pharma is testing its resistance.

As a part of our Breakout, Trend Line and Relation between volume and price learning, today we will discuss the chart of Square Pharma (SQURPHARMA). Before start please see the below chart first:

Square Pharma, May 27, 2013

Recently, Square Pharma broke its initial resistance with large volume, indicated as Line A. Now, it's testing its another resistance line, indicated as Line B. Line B is a very strong resistance. It may test again and again as previous. To analyse a share, it's a good side we identify its resistance and support.

Now, we need to find the support line. We know that after a resistance breakout, it creates a support. In simple word, when a resistance breaks, it acts as a support. Now the Line A is our support line. I have also drawn another trend line as Support, indicated as Line C. The end point of Line A and Line C is our support zone, indicated as oval.

Our last and the most important indication is Volume. The volume is still below our average line, indicated as D.

The bottom line is - It's not necessary that the resistance line B will be tested again and again and price will come to our support zone, oval, to make our analysis 100% right. Resistance line B may break with good volume or the support line C may break down. Please keep in mind that Support or Resistance is create to break itself.