Since it seems some of you are confused about what I mean on the market updates when I use the terms support and resistance levels Here you go Support Level In In the context of stocks, support level refers to a price level at which a stock has historically found support or buying interest from investors. In other words, it's a price level that a stock has had difficulty falling below because there are buyers willing to buy the stock at that price. The support level is usually identified by technical analysts by looking at the historical price movements of a stock on a chart. They look for areas where the stock has bounced back up after reaching a certain price level, indicating that there is a strong demand or support for the stock at that price. When a stock price approaches its support level, it is believed that buying interest will increase, and the stock price will likely bounce back up. If the stock price falls below the support level, it could be a sign of a trend reversal, indicating that there may be more selling pressure and the stock price could continue to decline. In summary, support level is an important concept for investors who are interested in technical analysis, as it helps to identify potential buying and selling opportunities based on historical price movements. Resistance Level In the context of stocks, the resistance level refers to a price level at which a stock has historically found resistance or selling interest from investors. In other words, it's a price level that a stock has had difficulty rising above because there are sellers willing to sell the stock at that price. The resistance level is usually identified by technical analysts by looking at the historical price movements of a stock on a chart. They look for areas where the stock has historically fallen after reaching a certain price level. When a stock price approaches its resistance level, it is believed that selling interest will increase, and the stock price will likely go down . If the stock price rises above or breaks through the resistance level, it could be a sign of a trend reversal, indicating that there may be more buying pressure and the stock price could continue to increase .

Posted by Suze at 2023-04-06 03:17:37 UTC