What are support and resistance levels in stock trading?

Support and resistance are key price levels in technical analysis that help traders identify potential entry and exit points.

1. Support Level: This is the price level where a stock tends to stop falling and bounce back up due to increased buying interest. It acts as a floor preventing further decline.
   
2. Resistance Level: This is the price where selling pressure increases, preventing the stock from rising further. It acts as a ceiling, causing price reversals.
   

When a stock breaks above resistance, it may signal an uptrend, while breaking below support may indicate a downtrend. Traders use these levels to plan their trades effectively.

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