As a stock moves towards its downside objective as indicated by the figure chart, there may be several oversold conditions along the way. Preliminary Support is a type of selling climax that may or may not occur with an oversold condition associated with it, but will often occur after a previous oversold condition(s). Preliminary Support is an important area where demand comes in to temporarily stop the down move. When you see Preliminary Support, it is your warning that the time for getting out of your short position is approaching. The Selling Climax is the next principle in the logical sequence of events, and getting out on the Selling Climax is our most favorable exit strategy for exiting short positions. Preliminary Support is where the first important buying enters the market (accumulation). Because of this, Preliminary Support may be considered in your accumulation count if the Last Point of Support occurs at the same level (see point and figure chart), and if the phases of your count and the market action suggest to include it.