Trading activity for TG Therapeutics, Inc. TGTX was subdued on Friday; however, the stock remains in an upward trend that is likely to persist.

Recently, TG Therapeutics experienced a breakout, suggesting bullish potential. Consequently, our team of trading experts has recognized it as our Stock of the Day.

The stock market operates on basic principles of supply and demand. Increased demand for shares leads to competitive bidding among investors, potentially driving prices up.

Stocks frequently pause or reverse their upward movement when they encounter resistance levels. Resistance represents a point where many traders are willing to sell shares at a similar price, creating enough supply to meet demand and cause the upward trend to stall.

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At times, stocks may reverse and decline after hitting a resistance level. This reaction often stems from anxious sellers. They may worry that other sellers will lower their prices, prompting buyers to seek better deals.

This creates a chain reaction where sellers begin to reduce their asking prices to facilitate sales. Such behavior can lead to a snowball effect, ultimately driving prices lower.

On the chart, the last three instances where TG Therapeutics met resistance near $36.25 exemplify this behavior.

Now that this resistance has been overcome, it indicates that buyers have gained the upper hand over sellers, resulting in a price increase.

With the sellers who created the resistance likely having exited the market by completing or canceling their sell orders, buyers may need to bid against each other again to procure shares. This could further propel TG Therapeutics’ stock price higher.

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