Support and Resistance

 Support and resistance are key concepts in technical analysis that refer to price levels at which an asset's price tends to find support (stop falling) or resistance (stop rising). These levels can be identified by analyzing past price movements and are often marked on a price chart in the form of horizontal lines.

Support levels are price points where the asset has had difficulty falling below in the past, indicating that there is a significant amount of buying interest at that price. This buying pressure can cause the price to rebound from the support level and continue moving higher.

On the other hand, resistance levels are price points where the asset has had difficulty rising above in the past, indicating that there is a significant amount of selling pressure at that price. This selling pressure can cause the price to stall or even reverse direction at the resistance level.

Traders and investors often watch for price breaks through key support or resistance levels, as these can indicate a change in the asset's trend. A break through a resistance level, for example, might be seen as a bullish sign, while a break through a support level might be seen as bearish.

It's important to note that support and resistance levels are not exact price points and can be subject to change over time. They should be used as part of a wider trading strategy, in conjunction with other technical and fundamental analysis tools.