support and resistance levels

Support and resistance levels are key concepts in finance and trading that help investors understand price movements. Support refers to a price level where a stock or asset often stops falling and bounces back up, acting like a floor. Resistance, on the other hand, is a price level where the asset struggles to rise higher, acting like a ceiling. These levels are determined by historical price patterns and trader psychology, and they can indicate where to buy or sell an asset. Understanding them can help investors make more informed decisions in the market.