Technical Analysis

Support & Resistance Levels

If you've ever looked at a stock chart, you've probably noticed that prices seem to bounce off certain levels. That's support and resistance. Support is a price level where a stock tends to stop falling and bounces back up. Think of it as a floor. Resistance is a price level where a stock tends to stop rising and pulls back down. Think of it as a ceiling. These levels form because of supply and demand. At support, buyers step in because they see value. At resistance, sellers take profits because