Support is a price level where buying interest has been strong enough to halt or reverse declines in the past; resistance is the mirror image on the upside, where selling pressure has capped rallies. Both form because traders remember prior price reactions — the more times a level has been tested and held, the more significant it becomes. A broken support level often becomes new resistance, and vice versa.
Why it matters
- —These are the most fundamental reference points in technical analysis — nearly every other tool (trendlines, patterns, indicators) is read relative to them.
- —The more times a level has been tested with a clear price reaction, the more traders are watching it — which can become self-reinforcing.
- —A breakout through resistance or breakdown through support on strong volume is one of the most widely watched technical events.
How to read it
| Level tested once | Tentative — not yet confirmed as significant |
| Level tested 2–3 times and held | Meaningful support or resistance |
| Level broken on high volume | Often flips role — old support becomes new resistance, or vice versa |