Even if you don’t like TA… you have to admit that identifying support and resistance before buying a stock can really help you identify TP and stop losses. Using it in conjunction with fundamental analysis is powerful! Education is important so I hope this post helps!

When trading, identifying support and resistance levels is critical for making informed decisions. Let’s break down these concepts using RenovoRx ($RNXT) and OS Therapies ($OSTX)

Why Support and Resistance Matter

Support and resistance levels act as psychological barriers in trading:

• Support: The price level where buying pressure outweighs selling pressure causing the stock to “bounce.”
• Resistance: The price level where selling pressure outweighs buying pressure, causing the stock to stall or reverse.

For $RNXT and $OSTX, these levels help traders identify entry points, exit targets, and areas to set stop losses. Watching for breakouts or breakdowns from these levels can signal the next significant move.

1. RenovoRx ($RNXT)

RenovoRx is showing strong technical signals, making it a great case for analyzing support and resistance.

• **Support Levels:**The stock recently broke out of a descending wedge, establishing new support near the $1.20 level. This support zone has held multiple times, indicating strong buyer interest at this price.
• **Resistance Levels:**Currently, $RNXT is facing resistance near $1.60, which coincides with a key psychological level and prior peaks on the chart. A breakout above this level with volume could trigger further upside momentum.
• Key Technical Factors:
  • The stock is trading above its 50-, 100-, and 200-day SMAs, confirming a bullish trend.
  • The upward-sloping trendline provides additional support and highlights a clear upward trajectory.

2. OS Therapies ($OSTX)

OS Therapies offers another excellent example, especially with its recent pullback.

• **Support Levels:**After a sharp decline, $OSTX found support near $3.00, where buyers have stepped in multiple times. This level aligns with both the ascending trendline and historical price action, making it a strong support zone.
• **Resistance Levels:**The stock faces resistance near $4.50, which acted as a ceiling during the last rally. This area marks a critical battleground for bulls to reclaim the upper hand.
• Key Technical Factors:
  • The stock is consolidating within an ascending channel, a positive sign for potential continuation.
  • The recent high volume during the pullback indicates significant interest and potential for a rebound.

Final Thoughts

For $RNXT, keep an eye on a potential breakout above $1.60. For $OSTX, a rebound from $3.00 and a retest of $4.50 could signal a swing opportunity. Using support and resistance effectively can enhance your trading strategy and help you navigate volatile markets.

Communicated Disclaimer: This analysis is for informational purposes only. Always conduct your own research before making investment decisions: 1, 2 , 3, 4