Support and Resistance Explained

What is Support?
Support is a price level where a stock tends to stop falling due to increased buying interest. Traders view it as a demand zone where bulls often enter the market.
Example: If Reliance repeatedly bounces from ₹2,700, that level is acting as support.

🔹 What is Resistance?
Resistance is a level where a stock tends to stop rising due to selling pressure. It's a supply zone where bears usually take control.
Example: If Nifty keeps failing to cross 23,500, it's a resistance level.

🔹 Why They Matter:

Help in identifying entry and exit points

Show where trend reversals may occur

Aid in setting stop-loss and targets

🔹 How to Spot Them:

Look for price bounces or rejections

Use tools: horizontal lines, moving averages, Fibonacci retracements

Confirm with volume spikes

🔹 Key Strategy:

Buy near support (low risk)

Sell near resistance (high probability)

Trade breakouts or reversals with confirmation