Prices that repeatedly stopped a fall, or capped a rise
Support is a price level where declines have repeatedly stopped; resistance is where advances have repeatedly stalled. They are said to work because many participants watch the same level, and once broken the two can swap roles. They are a reading of past price action, not a guarantee about future prices.
If a stock has turned back every time it approached $1,200 over the past year, $1,200 is acting as resistance.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.