Support and Resistance levels are very powerful points for trading these levels are denoted by multiple touches of price without a breakthrough of the level. These levels are seen by technical analysts as crucial when determining market psychology and supply and demand. Support and Resistance provides the trader many clues about the market and how to trade with ithese levels.
A support level is a level where the price tends to find support as it falls, these levels tend to stop price from falling below. In the image above you can see that each time the price reaches the support level it has difficulty penetrating that level. When price breaks below support, it is likely to continue falling until meeting another support level.
A resistance level is the opposite of a support level. It is where the price tends to find resistance as it rises. on the other hand, is the price level at which supply (selling pressure) is strong enough to prevent the price from rising further. In the image above you can see that each time the price reaches the resistance level it has a hard time moving higher.once the price has breached this level, it is likely to continue rising until meeting another resistance level.