Investor Guide
What Are Support and Resistance?
Treat past buying and selling behavior as zones, not precise forecasts.
In Simple Terms
Support is an area where buying previously became more noticeable; resistance is an area where selling or profit-taking previously became more noticeable.
A Simple Example
If an index repeatedly stabilizes near 5,000, investors might view 4,950–5,020 as a support zone rather than treating 5,000 as an exact floor.
Why It Matters
These zones can help identify areas where market participants may reassess risk.
How to Interpret It
Use them with trend, volume, market breadth, fundamentals, and time horizon rather than relying on one line.
Common Misunderstanding
Support is not a guaranteed floor, and resistance is not a guaranteed ceiling. They are usually zones, not exact numbers.
Risk Note
Support can break and resistance can be cleared. Price-level analysis cannot predict the future by itself or replace risk management.
Related Concepts
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This content is for education and general information only. It is not personalized investment advice. Investing can result in loss.