Support and Resistance
Technical Analysis
Definition
Key technical analysis concepts where support represents a price level where buying pressure prevents further decline, while resistance is where selling pressure prevents further advance, creating psychological price barriers that guide trading decisions.
Key Points
- Support acts as price floor, resistance as price ceiling
- Previous resistance often becomes new support when broken
- Stronger levels confirmed by multiple touches and volume
Examples
Stock finds support at $50 after declining from $60Index faces resistance at 4000 level multiple timesQuick Info
Category
Technical Analysis
Related Topics
trend analysis
breakout analysis
price action
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