What is Resistance and Support?

As the name suggests whenever the stock price is going down, it reaches the support and then again starts going up. The support can be calculated based on previous days High, Low and Closing values. If the stock breaks the support then it goes down till its next support level. Many traders use support levels to find the entry point. You can view the calculator page to find resistance and support levels for any price points of various stocks. Resistance means opposition for the stock price to go beyond it. The name suggests what a resistance can be. A resistance level is the opposite of a support level. It is where the price tends to find resistance as it is going up. This means the price is more likely to "bounce" off this level rather than break through it. However, once the price has passed this level, by an amount exceeding some noise, it is likely that it will continue rising until it finds another resistance level. Traders use resistance to find exit points.