Support is a price area where buyers tend to step in and slow or stop a fall. Resistance is a price area where sellers tend to appear and slow or stop a rise.
“Think of a floor and ceiling. Support = Floor: Price falls toward it and may bounce. Resistance = Ceiling: Price rises toward it and may fall back.”
Support and resistance are fundamental concepts of technical analysis. When price repeatedly reacts around a particular area, traders may interpret that area as significant. Resistance ────────────── ₹1,050 ↑ │ ₹1,030 │ ↓ ────────────── ₹1,000 Support If buyers repeatedly defend ₹1,000, that area may behave as support. If sellers repeatedly appear around ₹1,050, that area may behave as resistance. However, these are zones of potential reaction, not guaranteed turning points. When price breaks through a significant level, the previous resistance can sometimes become support, or previous support can become resistance. Traders often call this a role reversal.
Suppose NIFTY repeatedly finds buyers around 22,000 and sellers around 22,500.
Scenario A — Support Holds Price reacts from 22,000 and moves toward 22,500. Scenario B — Support Breaks Price breaks below 22,000 with strong selling pressure. The original support may then become a resistance area. Important: Neither outcome is guaranteed simply because a support or resistance level exists.
Treat support and resistance as zones, not perfectly precise lines.
A level being tested multiple times does not guarantee that it will hold again.
Wait for price action or another confirmation before taking a trade.
A breakout should be evaluated using context, not just a single candle crossing a level.
Previous support can become resistance, and previous resistance can become support.
Buying blindly every time price touches support.
Shorting blindly every time price touches resistance.
Treating every previous high or low as a major level.
Assuming a breakout is genuine without considering volume, structure and context.
Placing stops exactly at obvious levels where normal price fluctuations can trigger them.