Technical AnalysisBeginner
Support and Resistance
Price zones where buying or selling has repeatedly turned the trend before.
Detailed explanation
Support is a level where demand has previously stopped a fall; resistance is where supply has stopped a rise. They are zones rather than exact prices, and once broken decisively they often swap roles — old resistance becomes new support.
Example
A stock bouncing near ₹480 three times marks that zone as support; a decisive close below turns ₹480 into resistance on the way back up.
Why it matters
These levels are where traders concentrate stop-loss and entry orders, which makes them self-reinforcing.
Key points
- Treat them as ranges, not precise lines.
- More touches and higher volume make a level more significant.
- Breakouts on thin volume fail more often.
Related terms
More in Technical Analysis
Educational content only. Definitions and examples are illustrative and are not investment, tax or legal advice.