Support and Resistance
The best way to identify the target price is to identify the support and resistance points. The support and resistance (S&R) are specific price points on a chart expected to attract the maximum amount of either buying or selling.
The best way to identify the target price is to identify the support and resistance points. The support and resistance (S&R) are specific price points on a chart expected to attract the maximum amount of either buying or selling.
The support price is a price at which one can expect more buyers than sellers. Likewise, the resistance price is a price at which one can expect more sellers than buyers.
On a standalone basis, traders can use S&R to identify trade entry points as well.
On a standalone basis, traders can use S&R to identify trade entry points as well.
resistance is something which stops the price from rising further. The resistance level is a price point on the chart where traders expect maximum supply (in terms of selling) for the stock/index. The resistance level is always above the current market price.
The resistance is one of the critical technical analysis tools which market participants look at in a rising market. The resistance often acts as a trigger to sell.
support is something that prevents the price from falling further. The support level is a price point on the chart where the trader expects maximum demand (in terms of buying) coming into the stock/index. Whenever the price falls to the support line, it is likely to bounce back.
The support level is always below the current market price. There is a maximum likelihood that the price could fall until the support, consolidate, absorb all the demand, and then start moving upwards.
The support is one of the critical technical level market participants look for in a falling market. The support often acts as a trigger to buy.
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