Support and Resistance

Support Level:
A price level where demand is strong enough to prevent the price from falling further. It's like a floor—buyers enter here expecting prices to rise.

Example: If Nifty falls to 22,000 repeatedly and bounces back, 22,000 becomes a support level.

🔹 Resistance Level:
A price level where selling pressure overcomes buying, preventing prices from rising. It's like a ceiling—sellers dominate at this level.

Example: If Bank Nifty rises to 50,000 but fails to move above, 50,000 is resistance.

📊 How to Identify Them:

Historical price charts

Trendlines

Moving averages

Fibonacci levels

Volume analysis

📈 Use in Trading:

Buy near support

Sell near resistance

Use breakout strategy when price breaches either level