Stock Market · Technical Analysis

Support & resistance

The single most important TA concept

If you only learn one thing from technical analysis, make it support and resistance. Every other concept builds on this.

Support, the floor

Support is a price level where buying interest is strong enough to prevent the price from falling further. Think of it as the floor. Each time price approaches this level, buyers step in.

> Why does support form? Because traders remember: 'Last time the stock was at ₹500, it bounced.' They place buy orders there in anticipation.

Resistance, the ceiling

Resistance is a price level where selling pressure is strong enough to prevent price from rising further. The ceiling. Traders who bought at the peak and are now 'trapped' sell the moment price returns to where they bought.

Role reversal. The most powerful concept

When price breaks through resistance, that resistance level BECOMES support. When price breaks below support, that support BECOMES resistance.

This happens because the psychology flips: those who were selling at resistance now regret it as price moves higher. When price returns to that level, they buy, creating support.

Broken resistance becomes supportthe single most exploitable pattern in trading

How to draw support and resistance

• Look for price levels where the chart has touched or reversed multiple times
• More touches = stronger level
• Round numbers (₹500, ₹1000, ₹1500) often act as psychological S/R
• S/R is a zone, not an exact price. Think ₹498–₹502, not exactly ₹500

Practical use

Buy near support with a stop-loss just below it. Sell near resistance or wait for a confirmed breakout above it. This is the core framework for most trades.

Takeaway. Support = price floor where buyers step in. Resistance = ceiling where sellers appear. Broken resistance becomes support.