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Learn Support and how it is incorporated in Technical Analysis

Resistance Basics   Support By EMA   Support By Bollinger Band   Support By Daily Trendline

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What is Support Level?

Support level is the price from where stocks, slow down, stop moving downwards and they bounce back. Here bulls sentiments are stronger which push the price upwards.
Support is the level where investors believe that price will move higher and they start accumulating the stock results in increase in price.
Breakout:The markets sentiments keep on changing and may results in a breakout due to various reason. It can be fundamental or other market event, etc. While a support gives a buy signal to the traders, breakout signal that the bulls are losing and the price falls further.

Therefore it is important to look at the other technical parameters like Volume, MACD, Relative Strength Indicator (RSI), Candlestick Basics etc., when trading near support.

Once the support is broken its role will be reversed and it will serve as a resistance in future.
What decides the strength of Support?
A number of factors a trader may want to look around to see the strength and to confirm it. They are:

1.Length: The longer the duration of Support the more reliable it is. Longer duration shows more points, a price is hitting showing the positive sentiments.

2.Height: The broader the distance between the Support and Resistance the more powerful it is.

3.Volume: Higher volumes add strength to the support. Higher volumes indicates more traders have the same sentiment at a particular time frame.

Now we have understood what Support is. Now its time to look into Resistance. Please follow these links to find more about Support/Resistance and how it works. We have explained them in details and provided you with ample real life examples of them.

Resistance Basics   Support By EMA   Support By Bollinger Band   Support By Daily Trendline

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Our website provides free Stock screening based on Support/Resistance at different time period. It can be found at below link:

Related Technical Stock Screener

Support By EMASupport By SMASupport By Bollinger BandSupport By Daily Trendline
Support By Weekly TrendlineSupport By Monthly Trendline  
Support By EMASupport By SMASupport By Bollinger BandSupport By Daily Trendline
Support By Weekly TrendlineSupport By Monthly Trendline  



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(All analysis is based on End of Trade day's Value. Expected time of update is between 5 to 5.30 PM exchange time Zone)

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