A stock in a downtrend is moving lower and lower. Sometimes stocks move so low that they begin to plunge. If you are holding stock that is in a downtrend, you are probably losing money. Note: Later in this chapter you will learn about support levels. When your stock is in a downtrend, but hasn’t fallen below support (the price point where buyers previously stepped in to hold up the price), be careful of holding too long. If it does break support, this may be a reason to sell.
