Glossary · Technical Analysis

Support / Resistance

Price levels where buying / selling pressure has historically appeared.

Support is a zone where price has tended to stop falling because buyers stepped in. Resistance is a zone where price has tended to stop rising because sellers appeared. These levels come from prior swing highs/lows, round numbers, or congested trading ranges — not magic lines.

Support and resistance can break. When a solid support breaks, traders often watch it flip into new resistance (and vice versa). Treat them as areas of probability, not guarantees.

Example

A stock bounces three times near $48. Traders may call $48 a support area. If price later crashes through $48, that same zone may act as resistance on a bounce.