An important part of stock trading is conducting technical analysis. This analysis must include support and resistance levels. These are important be
cause they tell you what range a stock’s value has historically traded at.
The support level is the price at which the stock generally does not go below. It is where the demand for the stock keeps the price from going any lower. Of course support breaks can happen, (bummer L) which will then create another support at a lower price point.
The resistance level is the top price for a stock. It is expected that the price will not rise any higher. Again a resistance break can happen, (Yay! J) which will create a higher top price.
Know these levels and use them in your technical analysis so you can win!
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