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