Stock of the Day: Did APA Corporation Break Major Resistance?

APA Corporation (NASDAQ:APA) shares are trading lower on Wednesday after gaining more than 5% on Tuesday and breaking a long-term resistance level. As you can see on the chart, there has been resistance at around $45 for the shares since June 2022. This resistance may have been broken yesterday. This can have bullish implications, and it is why APA is the Stock of the Day. ‘Markets have memories’ is an old saying on Wall Street. It refers to how price levels can remain important for a long time. This can be seen in the APA chart. It was a resistance level in June 2022. Then it was resistance in November 2022. After a major selloff, the shares finally rallied back to this price in March. Once again, they hit resistance around $45. They also ran into resistance there last month. On Tuesday, this resistance may have been broken. This could be a bullish development. It shows that the traders and investors who created the resistance are gone. They have either finished or canceled their orders. With these sellers out of the way, new buyers will be forced to pay higher prices if they want to draw sellers back in. This could put APA into a new uptrend. There can be resistance at price levels that had been resistance previously because of market psychology. Some of the people who purchased shares at the resistance regret doing so when the price dropped after. A number of them decided to hold onto their losing positions. But they also decided that if they can eventually do so, they will sell at breakeven. As a result, when the shares rally back to the resistance level, they place sell orders. If there is a large quantity of these orders, it creates resistance at the price again. Now that APA has finally broken this important level, it may be about to trend higher. APA Stock Price Activity: APA shares are trading lower by 4.16% at $45.44 at the time of publication on Wednesday, according to Benzinga Pro data. Photo: Shutterstock