overhead supply

What does overhead supply mean?

Overhead supply is a term technical analysts use when a stock has been reached a resistance level where buyers have bought at previous highs but the stock price has now dropped and they are now waiting to sell near or at their entry price to break even. When does overhead supply occur? A stock may have rallied to all time high but then starts to fall from this level. Buyers who have bought the stock at the high are now …

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