Support and resistance are key concepts in technical analysis. A support zone is a price level where buying interest has historically been strong enough to prevent further declines. A resistance zone is a level where selling pressure has repeatedly limited upward movement. These zones are formed by collective market behavior and can be based on historical highs and lows, round numbers, trendlines, or Fibonacci levels. Traders use support and resistance zones to plan entries, stop-loss placements, and profit targets. A breakout above resistance or below support is often interpreted as a signal of a new directional move. These levels should be seen as zones rather than exact price points.
