Castor Maritime Stock: Technical Levels To Watch

Despite its reverse split on May 28, the death spiral of Castor Maritime Inc. CTRM continues.

This chart teaches an important lesson about the markets. When stocks head lower, levels that had been support can convert into resistance.

This happens because many of the investors who bought shares while the stock was at support regret their decision to do so after the support breaks and the stock heads lower. Many of them decide to sell, but they will only do so if they can sell the shares at the same price they paid for them.

Then they can get out without losing money.

As a result, they place their sell orders at levels that were previously support. If there are enough of these orders, resistance forms.

This is a common occurrence in markets. And until it stops happening with CTRM, the death spiral could continue.