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Auris Medical Falls To Support And Rallies

Since late January, each time shares of Auris Medical Holding Ltd. (NASDAQ: EARS) fell to $2.80 a rally followed. This happened because $2.80 is a support level. At support levels, there is more demand for the shares than there is supply. This is why sell-...

05/10/2021 10:16

Since late January, each time shares of Auris Medical Holding Ltd. (NASDAQ:EARS) fell to $2.80 a rally followed. This happened because $2.80 is a support level.

At support levels, there is more demand for the shares than there is supply. This is why sell-offs end when they reach them.

Sometimes, stocks rally after they reach support levels. That’s what has happened with EARS multiple times over the past four months and there’s a chance this happens again.

Shares rebound off of support when some of the buyers become impatient and decide to pay higher prices. This then causes other buyers to become impatient and they decide to pay higher prices as well. As the buying gains momentum, it results in a rally.

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