Support & Resistance

Support is a price level where buying pressure has historically been strong enough to stop or reverse a decline, and resistance is a level where selling pressure has historically stopped or reversed an advance. Once broken, a support or resistance level often flips to play the opposite role — old resistance becomes new support, and vice versa. Support and resistance are among the most foundational tools in technical analysis, underpinning breakout trading, range trading, and most chart-pattern analysis.