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Glossary · PSX term

Support and resistance.

Support is a price level where buying tends to emerge, resistance is where selling tends to appear.

Definition

Chart watchers use these levels, formed by past price behaviour, to anticipate where a stock might pause or reverse. A clear break above resistance or below support can signal a new move.

Worked example

If a stock repeatedly bounces near Rs. 90 and stalls near Rs. 110, those are its support and resistance.

Related on PSX Clarity

Relative Strength Index (RSI)

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