Uptrend.
When a stock is rising over time it is said to be in an uptrend. As it rises, it's price makes higher "highs" and higher "lows". A straight line drawn on a stock chart, passing through the higher "lows" is referred to as the support line. Anytime a stock on an uptrend breaks through it's support line is a time to keep a close watch on the stock as it may reverse direction.
Downtrend.
When a stock is falling over time it is said to be in an downtrend. As it falls, it's price makes lower "highs" and lower "lows". A straight line drawn on a stock chart, passing through the lower "highs" is referred to as the resistance line. Anytime a stock on an downtrend breaks through it's resistance line is a time to keep a close watch on the stock as it might begin to on an uptrend.
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