Support and resistance
Support and resistance are reference price levels used in technical analysis. A support is a level at which a falling price tends to slow down or stop; a resistance is a level at which a rising price tends to struggle to continue.
These levels are identified by observing price charts and the points at which the movement has repeatedly reversed in the past. When a price clearly breaks through a resistance or a support, it is called a breakout; a level that has been broken can then reverse its role.
Support and resistance are used in trading as references, including in bullish or bearish phases. However, they are subjective interpretations based on historical data: they do not guarantee future price movements.
Disclaimer: This entry is for information purposes only and does not constitute investment advice or a recommendation.