At the end of the day, stock price move up when there are more buyers, and move lower when they are more sellers.
Critical point such as 200D EMA is a "commonly" accepted support level. Dont ask me why, and dont want to debate why. Just accept it is.
So, when a stock moves down, the selling pressure start to build up. Now, when it touches 200D EMA, if buyers are not stepping in to support this critical point, something big is happening. Otherwise, buyers will come and support the stock
This is what TA means by saying "price action" --- We do not ask why nor do we try to figure out why. There are so many factors impacting stocks that are way beyond what individuals such as ourselves can figure out. Instead, we look at price action, and we know that, if stock can not hold ciritical support point of 200D EMA, then there is no buyers at this price.
