Impara / investing

Support and resistance mark areas of prior buying or selling pressure

Historical chart levels can be tested and can fail.

Dukascopy describes support as an area where buying interest has previously limited declines and resistance as an area where selling has limited rises. Analysts identify these zones through past highs and lows, trendlines and other chart features. The article discusses several forms rather than treating every level as a single exact price.

A return to an earlier zone can attract attention because participants remember prior reactions and orders may cluster nearby. A move through it can also change its interpretation. A previous resistance area may later be watched as support, but the reversal of roles is an analytical possibility rather than a market obligation.

The guide discusses breakouts and confirmation to distinguish an apparent move from sustained follow-through. This summary retains those uncertainties and omits account promotions. A chart boundary is evidence to interpret alongside current conditions, not a promise of protection against losses.

Image source: Dukascopy Bank SA

Research sources & methodology

Original sources and publication references.

Community

Tell us what you are researching. We will review your request.