Price levels where a downtrend can be expected to pause due to a balance of buying and selling interest.
Support and resistance are key price levels in financial markets where the trend of an asset is expected to pause or reverse. Support refers to a price level at which demand is strong enough to prevent a further decrease in price, while resistance is a price level at which selling interest is expected to overcome buying interest, preventing further increases. These levels are identified based on historical price action and are crucial for trading strategies.