Support
Support is an area where price has previously found buying interest.
It may act as an area where sellers struggle to push price lower.
Resistance
Resistance is an area where price has previously found selling interest.
It may act as an area where buyers struggle to push price higher.
Important
Support and resistance are not magical lines.
Price can:
- React from them
- Break through them
- Consolidate around them
- Retest them
Think of them as areas of interest, not guaranteed reversal points.
Key Takeaways
- Support can represent potential buying interest.
- Resistance can represent potential selling interest.
- Neither guarantees a reversal.
Disclaimer
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
