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Let's start with the basics of technical analysis: stock resistanceSupport is where the price of the stock is cheap enough so that people buy more of the stock and hence support it. Resistance is an area where the stock is at a price that traders perceive to be too expensive or they want to protect the their profits, so they sell their part or all of their position.Basically, support is where you can expect the price to bounce up from and resistance is where you can expect the price to start dropping back down.Support and resistance points are very useful. The best thing they can do for a trader is identify potential entry and exit points. A trader will use technical analysis to find the support and buy in at that price. A trader would use the resistance levels to find sell points.The more times a support is tested, the stronger it is assumed to be. The same goes with resistance. The more times a resistance is tested, the stronger it is. stock indicators