Support and Resistance

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Support and Resistance are technical words used in technical analysis in stock, forex, commodities etc.
Support and Resistance is a concept that the movement of the price of a stock will tend to stop and reverse at certain predetermined price levels. These levels are denoted by multiple touches of price without a breakthrough of the level.

Support levels are where demand is perceived to be strong enough to prevent the price from falling further, while resistance levels are prices where selling is perceived to be strong to prevent prices from rising higher.

Support and Resistance levels are psychological important levels where a lot of buyers and sellers are willing to trade the stock.
When trend lines are broken, the market psychology shifts and new levels of support and resistance are established.

Investdata Academy.

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