It is the general tendency on the part of the persons associated with the stock market to predict support levels and the resistance levels. But, in most of the cases, these predictions turn topsy-turvy, and market continues to move in most unpredictable manner on most of the times. This situation has created a trading rule - Bull Market Has No Resistance & Bear Market Has No Support. Many may differ, yet the fact remains that no one can predict the market definitely. Yes, in many cases, say around 50% of the cases, the market may behave in the predicted fashion. But, in other 50% of the cases, markets may behave very differently and either fall to unexpected levels or move up rather rapidly defying all resistance levels.
- Trading Rules - a book by William F. Eng dealing with 50 Stock Market Trading Rules