Aphria Inc (NYSE:APHA) produces and sells medical cannabis in Canada and international markets.

APHA stock broke support around the $6 level. This level was also support during the middle and then again at the end of August. If it continues to head lower there may be some support around the $5.20 level because it was where the low was in early August.

The $6 level will probably now become a resistance level. This is because the investors who bought it when it was a support level are looking at losses now that the stock is lower. They tell themselves that if it rallies back to the level, they will sell their stock so that they can get out at breakeven.

Those who sold it short at the support level are making money now that it is lower. They tell themselves that if it rallies back, they will short more and add to their positions. Both of these groups of investors will place their sell orders at the $6 level and this supply of stock creates resistance.