Support and Resistance

Support and resistance levels represent prices where there has been exhaustive supply or demand, which can influence the price if it approaches this level again. Support acts like a floor: a price where investors tend to see good value, and heavy buying action keeps the price propped up above this level. Some traders buy around support if they think it will hold. Others place stops just below support, since a penetration suggests bearishness. Conversely, resistance acts like a ceiling: a price where investors tend to take profits and the selling action holds the price below this level. Some investors take profits near resistance if they think it will hold. Others place stops just above resistance, since a penetration suggests bullishness.

Proprietary support and resistance level generation algorithm samples recent pricing, identifying extremely congestive ranges and unyielding price levels.

The most significant support level and the most significant resistance level are presented and identified for the selected charting time frame (i.e. number of price bars ending with the most recent closed session).

A support level is chosen by identifying a price level that has been touched the most frequently by the "low" values of bars on the chart. Multiple price levels are analyzed and assigned with higher significance to a candidate support level when there are more touches to that level by the lows. The touches do not need to be the exact same price as the identified support level, rather they must come closethe closer they are, the more significant considerations the candidate support level to be. This same approach is used to identify resistance levels; however, "highs" are used to represent the price level acting as a ceiling.

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Data disclaimer: Technical analysis data and indicators are provided by Trading Central. Trading Central is a separate entity, unaffiliated with Webull Financial. Webull is not responsible for the accuracy or completeness of data provided by Trading Central. All data are provided for informational purposes only, and are not intended, and should not be construed, as investment advice or recommendations.