In stock market , support and Resistance symbolizes key junctures where the forces of supply and demand meet. Prices are driven by excessive supply (down) and demand (up). Thus technical analysis is very much important in the wake of knowing buy/sell signal . Supply is synonymous with bearish, bears and selling. Demand is synonymous with bullish, bulls and buying. These terms are used interchangeably throughout this and other articles. As demand increase, prices advance and as supply increases, prices decline. When supply and demand are equal, prices move sideways as bulls and bears slug it out for control. SUPPORT ? Support is the price level at which demand is thought to be strong enough to prevent the price from decline further. The logic dictates that as the price declines towards support and gets cheaper, buyers become more inclined be it intraday or delivery. The intraday trading software can make out a p...
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