They push price through these points to gather the triggered sell orders. Paradoxically, the volume surge induced by this violation quickly alleviates selling pressure, causing the market to rebound above the round number. Knowledge of market numbers evokes interesting short sale strategies. No congestion area has formed just below this key resistance, i.e. the stock reaches the number at the end of an extended rally. For example, don't short 30 when a stock has pushed up out of a base at 28 or 29. 2.
Technical indicators show an overbought condition and rally termination.
Use cross-verification such as RSI and Fibonacci retracements to increase safety. A second short sale enters the final breakdown of a market number. Falls from these numbers can be sharp and nasty, especially when cross-verification confirms the break pierces another key form of support, such as a moving average. In fact, market numbers routinely appear at major moving averages, Bollinger Band extremes and key retracement percentages. And watch closely for those rare times when multiple indicators intersect at round numbers.