Support and ResistanceSupport and Resistance in a stock chart are the pressure areas which tries to hold a falling price and blocks a rising price, respectively.They are the back bone of any technical analysis and stock trading. These are the patterns created by shifting of sentiment of mass trading mind between bullishness and bearishness. Trend is your friend. Dance with the friend. Tune to the trend. A falling price tends to find support at some price levels and bounces up. These are the places where a bearish trader turns bullish. At these levels the stock appears to be attractive to buy. But if the selling pressure increases to break this level, the prices continues to fall until it finds one more support. Similarly a rising price tends to find resistance at some price levels and retreats back. These are the places where a bullish trader turns bearish. At these levels the stock appears to be overpriced. But if the demand increases to break out this level, the prices continues to rise until it finds one more resistance. Every support after failing to hold the prices acts as a resistance and every resistance once pierced acts as a support. All these pressure points can be joined by trend lines, which when extended acts as pressure points of the future. These points can also be identified by Pivot point calculation, Fibonacci levels, Quadrant lines, Gann angles, Gann fan, etc; View these levels as a 'range' rather than a single point. Give a few points this side and that side to allow for the market noise. Resistance and Support levels become more stronger or significant, if the prices retreats more number of times from these levels. Study the graphs given below.
Study how, over a period of many years, a price level will act both as support and resistance. 
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