Support and resistance: Where buyers and sellers keep showing up
Why prices keep turning at the same levels, how to find support and resistance on a chart, what a breakout is and why broken resistance often becomes support.
Prices remember where they turned before
Support is a price where a falling stock keeps finding buyers. Resistance is a price where a rising stock keeps meeting sellers. They form because people remember: those who missed buying at ₹500 last time are waiting to buy there again.
What to look for
- Support (green line): price bounced up from here more than once.
- Resistance (red line): price was turned back here more than once.
- The more times a level holds, the more it matters when it finally breaks.
Once broken, levels often swap roles: old resistance becomes new support. Traders call this role reversal.
Price was turned back near the red line three times. Today it closed clearly above it, on higher volume. What is this called?
- A breakout above resistance
- A bounce off support
- A false signal, because it failed three times
Show the answer
A breakout above resistance. Three failures at the same price mean many sellers were waiting there. Closing above it means those sellers have been used up. That is a breakout.
The breakout
For weeks the stock bounced between about ₹502 and ₹542. When it finally closed above resistance on strong volume, the range was over and buyers were in control.
Wait for a close above the level, not just a touch during the day. Many breakouts fail within hours.
Practise Support and resistance, free
Reading about it is step one. In MarketSeekho you see a real NSE chart with the future hidden, call Bull or Bhalu, say why, and get graded on your reasoning, not luck.
Common questions
What is Support and resistance?
Support is a price where a falling stock keeps finding buyers. Resistance is a price where a rising stock keeps meeting sellers. They form because people remember: those who missed buying at ₹500 last time are waiting to buy there again.
What should I look for with Support and resistance?
Support (green line): price bounced up from here more than once. Resistance (red line): price was turned back here more than once. The more times a level holds, the more it matters when it finally breaks.
How can I practise reading Support and resistance for free?
MarketSeekho has a free four-page chapter on Support and resistance (learn, answer a question, spot it on a chart, then make a call) and daily real-chart practice graded on your reasoning. No sign-up or money needed.