WallStreet Research™

Over the past two weeks shares of JAGX have rallied from levels around $1.05 to current levels around $1.50. After testing resistance at the $1.45 level for a few days it broke through to the upside.

There is a good chance that the $1.45 level now becomes support. Levels that were resistance become support because when the stock trades higher those who sold it at the level now believe they made the wrong decision. They tell themselves that if it drops back to the level, they will buy it back.

Those who bought it believe they made the right decision but they wish they bought more. They tell themselves that if it drops back to the level, they will add to their positions.

Both of these groups will place their buy orders at $1.45. This demand for the stock at the level is what creates support.