Technical Analysis Support Resistance

Support Level is the price level where we can expect buying to increase, due to which fall in prices can be halted for the time.

Resistance Level is the price level where we can expect selling pressure to increase, due to which rise in prices can be halted for the time.

Practical Use:
1> Identify Support Level & Buy above Support Level. Keep Stop Loss Below Support Level.

2> Identify Resistance Level & Go short below Resistance Level. Keep Stop Loss Above Resistance Level.

3> If Support Level does not hold (price goes below support level), you can go short & keep stop loss above Support Level.

4> If Resistance Level Does not hold (price goes above Resistance Level), you can buy & keep stop loss below Resistance Level.

Caution: In cash market if you short sell you have to cover (buy) it till the end of day, else it goes for Mutton shop called Auction. Best option for short selling is Futures & Options Market, where you can go short & stay short for days, which is not possible in Cash Market.

Caution: Price crossing Support Or Resistance Level does not mean the levels failed to hold. Wait for some time to see whether the levels have actually failed to hold.






Technical Analysis Basics

Technical Analysis Charts Type

Technical Analysis Trendline

Technical Analysis Trend Reversal

Technical Analysis Moving Average