Stock Of The Day: TG Therapeutics Breaks Out, May Head Higher

Trading is subdued with TG Therapeutics, Inc. TGTX on Friday. But the shares remain in an uptrend and there is a good chance the trend will continue.

TH Therapeutics recently staged a breakout and it can have bullish implications. This is why our team of trading experts has made it our Stock of the Day.

The stock market is driven by supply and demand.

If there is more demand, or shares to be bought, then there is supply, or shares to be sold. Investors and traders who wish to purchase shares will be forced to outbid each other if they want to draw sellers into the market. This action can force the shares into an uptrend.

Stocks tend to pause or end their moves higher when they reach resistance levels.

Resistance is a large concentration of traders and investors who are looking to sell shares at or close to the same price. At resistance levels, there are enough shares for sale to complete or fill all the buy orders. This is why the uptrend ends or pauses.

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Sometimes, stocks reverse and move lower after they encounter resistance. This is caused by anxious and aggressive sellers.

Some of these sellers are concerned that other sellers will undercut their prices. The buyers will go to whoever is willing to sell them shares at the lowest price and the sellers don't want to miss the trade.

So, they reduce the prices they are willing to sell. Other anxious sellers see this and do the same. It can result in a snowball effect that pushes the price lower.

You can see on the chart this is what happened the last three times TG Therapeutics reached resistance around $36.25.

Now this resistance has been broken. This means the buyers overpowered the sellers and pushed the price higher.

Because the sellers who created the resistance have left the market by finishing or canceling their sell orders, buyers have no choice but to start to outbid each other again if they want to buy shares.

This could force TG Therapeutics shares even higher.

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