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?

  • 1
    That could be a trigger to short the stock. There are a multitude of reasons why the price could go down, if you are using TA all you should be worried about is that the bears are winning over the bulls.
    – user9822
    Jan 29, 2016 at 8:35
  • 3
    What's causing the stock price to drop is that people are willing to sell it for that price. Anything else is post-hoc justification. Jan 29, 2016 at 11:24

1 Answer 1


" 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).

Beta defined

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.

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .