sorry for some minor grammar issues its late and I'm trying to get as much information for a class of mine. So what exactly is making the price of a stock to go down even though as an example through technical analysis lets say a stock like xyz stock has reached its support level but there are no news indicators that could bring the price down so why or what are some possibilities for the drop in price below the support line even after it has touched its support level?
" A rising tide lifts all ships "
Most (but not all) stocks trend along with the general market. Some trend right along with the market (and have a beta at, or very near, one) some follow the Market, but are less sensitive (having a beta of less than one). Some are hypersensitive (and would have a beta of greater than one).
So most of the day to day movement of a stock is because the general market is moving (in the same direction). Of course, exceptional news about the company would cause its price to move independent of the general market. But more often than not the price of a stock moves just because the rest of the market is moving.