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Support & resistance

Support is a price zone where a stock has tended to stop falling; resistance is a zone where it has tended to stop rising. Moving averages often act as both.

Support and resistance are price levels where a stock has repeatedly reversed. Support is a floor — a zone where buying has previously emerged to halt declines. Resistance is a ceiling — a zone where selling has previously capped advances. They come from prior highs and lows, round numbers, and widely-watched moving averages such as the 200-day.

These levels are approximate and self-reinforcing: they matter partly because so many traders watch them. A level that holds repeatedly can become significant, and a level that finally breaks can flip roles (old resistance becoming new support, and vice versa).

stocks-llm computes each company’s own levels nightly from its most recent 504 trading sessions at most, cut back to two calendar years and to the stretch since its last big price break, so a level always belongs to the period and the price era it is quoted in. A price counts as a level only when the stock turned there more than once, and every level is shown with the evidence behind it: how many times it was touched, when it was first seen, and when it was last tested. The 200-day moving average — one of the most-watched lines of this kind — is tracked separately, and stocks sitting on or reclaiming it have their own screen. Support and resistance describe past behavior at a price level, not a guarantee it will hold; nothing here is advice.

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Stocks near their 200-day support →

Related terms

  • Moving average (50-day & 200-day) — A moving average smooths a stock’s price by averaging its recent closing prices — the 50-day and 200-day are the most-watched trend lines.
  • Golden cross — A golden cross occurs when a stock’s 50-day moving average crosses above its 200-day moving average — a widely-watched long-term momentum shift.
  • Death cross — A death cross occurs when a stock’s 50-day moving average crosses below its 200-day moving average — the bearish counterpart of a golden cross.
  • RSI (Relative Strength Index) — The RSI is a 0–100 momentum oscillator that measures how fast a stock’s price has risen or fallen recently; readings below 30 are "oversold" and above 70 "overbought."
  • Overbought & oversold — "Overbought" and "oversold" describe a stock whose price has moved up or down unusually fast recently — most commonly measured with a 14-day RSI above 70 or below 30.

See more terms in the stocks-llm glossary.

Informational only — NOT financial advice. This is an educational definition, not a recommendation to buy or sell anything. Metrics on stocks-llm are delayed data and may be missing or stale. Always verify information independently and consult a qualified financial professional before making any investment decision.