LEARN WITH INVESTOGAINER--> SUPPORT & RESIATNCE MASTERCLASS!
Before taking any trade, ask yourself one simple question:
“Where is the price most likely to react?”
That is where Support and Resistance come in.
##What Is Support?
Support is a price zone where buying interest tends to emerge.
When a stock repeatedly falls towards a particular level and finds buyers, that area becomes a support zone.
For example:
Stock falls → reaches ₹100 → Buyers enter → Price rises
If ₹100 gets tested multiple times, traders start watching it closely.
Support = Potential Buying Zone
But remember: support is a zone, not an exact number.
##What Is Resistance?
Resistance is the opposite.
It is a price zone where selling or profit-booking pressure tends to increase.
For example:
Stock rises → reaches ₹120 → Sellers enter → Price falls
If ₹120 repeatedly stops the price, it becomes an important resistance zone.
Resistance = Potential Profit-Booking Zone
------>The BIGGEST Mistake Traders Make
Many traders see resistance and immediately think:
“Breakout आने वाला है!”
And they start buying before the breakout is confirmed.
Similarly, when price reaches support, traders immediately assume:
“Support टूटेगा!”
and start shorting.
This is where many traders get trapped.
##Think of It This Way
Resistance
Price approaches resistance
↓
Selling pressure increases
↓
First Expectation = Reversal
Only if price decisively breaks and sustains above resistance should you start considering a breakout.
Support
Price approaches support
↓
Buying interest increases
↓
First Expectation = Bounce
Only if price decisively breaks and sustains below support should you start considering a breakdown.
$$Bottom Line
Support and Resistance are decision zones, not guaranteed turning points.
The smartest approach is:
At Resistance → Expect rejection first, confirm breakout later.
At Support → Expect bounce first, confirm breakdown later.
##STOCKS THOSE TRADING NEAR RESISTACNE