Category: Stocks

Definition: Resistance is a price level where a stock tends to stop rising and may start to decline. It acts like a “ceiling” for the stock’s price. Why It Happens: At the resistance level, there is generally enough selling interest to prevent the price from rising further. Sellers are more willing to sell the stock…

Definition: Support is a price level where a stock tends to stop falling and may start to bounce back up. It acts like a “floor” for the stock’s price. Why It Happens: At the support level, there is typically enough buying interest to prevent the price from falling further. Buyers are more willing to purchase…