False Break – Support and Resistance Analysis

When is a break not a real break? When it’s a false break! Sometimes the currency pair gets naughtier than just testing a support or resistance level with its shadows as we saw in Figure 11-7 in Invest Diva’s Guide book.

The second point of the IDDA includes constant research for key support and resistance levels. Support and resistance are thought of as limitations for the currency pair to dance freely on the dance floor. All we need to do it to identify the support and resistance and use them to our analysis. If we figure where the pair is likely to stop moving further, we can make a better investment decision.

Support and resistance are two of the most discussed concepts in Technical analysis. They can come in various forms from very basic ones to more advanced and exciting ones.

We look for breakouts so determine the next level to watch out for. However, sometimes the breakouts are fake.

False Break of Support

Look at the example in Figure below.

False Break – Technical Analysis Support and Resistance Example

After testing the support level a couple of times, the prices actually closed below it, getting the traders all excited.

Get my updates. Free.

The pair was probably secretly laughing when it heard the traders behind the computer shouting:

“It broke the level!It broke the level!” After having fun below the support level for just a little bit, the two of them moved back to where they had been before. And guess what? Sometimes a false break is actually a signal that an actual breakout in the opposite direction may come along soon! Those naughty pairs!

Look what happened after the false break in the image above.

False Break of Support Example

After the false support break, the pair found a way to break the resistance. And this time the two of them were not kidding. The market went all the way up to a previous key resistance level after that, and broke it.

Get My Updates. Free.

FunnelHubSupport

Nvidia (NVDA) $5 Trillion Milestone Is Still Shaking Up Wall Street – Is This The Peak Of The AI Boom Or Just The Beginning?

November 8, 2025 No Comments

After a period of unstoppable momentum, Nvidia (NVDA) is once again dominating headlines – and it’s no wonder Wall Street can’t look away. Once known primarily for gaming graphics, Nvidia has transformed itself into the beating heart of the AI revolution.

Its playbook, centered on innovation, scale, and ecosystem control, has turned the company into one of the most valuable and influential forces in tech history. But as investors cheer its meteoric rise, the question now looms: is Nvidia reaching new heights of sustainable growth, or is it flying too close to the sun?

Netflix Stock (NFLX): Exciting 10:1 Split. Not-So-Exciting Earnings. What’s Under The Surface?

October 31, 2025 No Comments

Netflix is one of the most recognizable companies in the world. It has a massive audience, strong brand awareness, and a long history of reshaping how we watch TV. Recently, Netflix announced a 10:1 stock split. A split does not change the value of the company, but it lowers the price per share and often makes the stock feel more accessible to everyday investors.

Beyond Meat Stock (BYND) $900 Million Debt Deal News: Lifeline Or Last Gasp Before Collapse?

October 24, 2025 No Comments

After months of steep declines and fleeting meme-fueled rallies, Beyond Meat (BYND) is once again in the spotlight – this time for its massive $900 million debt-for-equity deal. Once celebrated as the face of plant-based innovation, the company now finds itself fighting for survival amid collapsing sales, widening losses, and a heavily diluted shareholder base.

Ferrari Stock (RACE) Plunged Hard. Is It A Short-Term Drop Or A Long-Term Decline?

October 16, 2025 No Comments

Ferrari. A name that evokes speed, luxury, and precision.
But lately, its stock has been running into some rough turns.

After hitting record highs earlier this year, Ferrari’s share price took a sharp dive following its Capital Markets Day. Investors were caught off guard. Expectations were sky-high, and the company’s updated targets didn’t quite match the market’s adrenaline.

Coca-Cola Stock (KO) Is Quietly Making A Move Most Investors Are Missing

October 15, 2025 No Comments

Coca-Cola has been around for over 130 years and is one of the most recognizable brands on Earth. With more than 200 beverage brands across 200 countries, it’s not just about sodas anymore—Coke owns names like Fanta, Sprite, Minute Maid, Powerade, Costa Coffee, and even premium water and energy drinks.

Has Qualcomm (QCOM) Finally Woken Up? The AI Breakout Wall Street Didn’t See Coming

October 14, 2025 No Comments

After months of flying under the radar, Qualcomm (QCOM) has finally jolted back to life – and investors are starting to notice. Once known mainly for powering smartphones, Qualcomm is now stepping into the spotlight as a serious player in the AI revolution, with growing opportunities across AI PCs, cars, wearables, and smart devices. Its latest chip launches and partnerships with major brands like Google and BMW show a clear shift toward becoming a more diversified and innovative technology leader.