Support and Resistance

Prices the market remembers.

A level tested, broken, then defended from the other side the level rejected rejected held A support level is a price where buyers have repeatedly appeared. A resistance level is where sellers have. They exist because people remember: those who bought at a price and watched it fall want out at breakeven; those who missed a bounce want another chance at the same price. The flip When a resistance level finally breaks, it frequently becomes support. The sellers who lived there are gone, and the buyers who broke through will defend their entry. The chart above shows exactly this: the level rejects price twice, breaks, and then holds it up from below. Simple and visible Gives concrete places to act Works on any timeframe Levels are zones, not exact prices Easy to draw after the fact and feel clever The more obvious a level, the more it gets hunted

Part of Learn NEPSE Investing, a free course on reading Nepali company accounts and charts. Section: Charts.