🧱 Understanding Support & Resistance Levels
Stock Literacy • Technical Analysis • Chart Basics
Support and resistance levels are key zones where price tends to react on a chart 🔍. These levels help traders find good entry and exit points, identify breakouts, and manage risk more effectively 📊.
What Is Support? 🟩
Support is a price zone where buyers typically step in and push the stock back up.
- Acts like a “floor”
- Previous lows often become support
- Works stronger when tested multiple times
What Is Resistance? 🟥
Resistance is where sellers take control and push price back down.
- Acts like a “ceiling”
- Previous highs act as resistance
- Breakouts happen when resistance is broken
Why These Levels Matter 🎯
- Helps choose safer entry points
- Helps set reasonable stop-loss levels
- Helps avoid buying at the top
Educational & informational only — not financial advice.
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