Support and resistance are two of the most fundamental concepts in technical analysis used by traders in the stock market, forex, commodities, and other financial instruments. They help identify key price levels where the market tends to reverse or pause. Understanding these concepts can significantly improve decision-making in trading. --- What is Support? Support is a price level where a downtrend can be expected to pause due to a concentration of demand. As the price of an asset drops, buyers become more inclined to buy, creating a “floor.” If the price approaches this level, traders anticipate it will bounce back rather than fall further. Support levels are not always exact numbers; they can be zones or ranges. They may form due to historical price action, psychological levels (like round numbers), or technical indicators like moving averages. For example, if a stock repeatedly bounces back up from ₹500, that level is considered strong support. However, once ...
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