Definition
Support is a price level where buying is strong enough to prevent the price from declining further. Resistance is a price level where selling is strong enough to prevent the price from rising further. These levels are key concepts in technical analysis.
Example
If a stock repeatedly bounces off $50 and fails to break through $60, $50 is support and $60 is resistance.
FAQ
What is Support and Resistance?
Price levels where a stock tends to stop and reverse direction.
Why is Support and Resistance important?
Support and Resistance helps investors evaluate technical analysis and make more informed decisions.