Support and Resistance

Price levels where an asset tends to stop falling or rising.

Support is a price level where buying interest tends to halt a decline, while resistance is where selling pressure tends to cap a rise. Traders use these levels to time entries and exits. When price breaks through, the old support often becomes new resistance and vice versa.

Traders watched the stock's Support and Resistance levels, bouncing off $50 but failing to break through $60.