IN PLAIN ENGLISH
Support is a floor the price keeps bouncing off; resistance is a ceiling it keeps hitting. When price breaks through resistance and holds above it, that level often becomes the new support. Moving averages (SMA 50, SMA 200) frequently act as dynamic support or resistance.
FULL DEFINITION
Price levels at which a security has historically had difficulty moving below (support) or above (resistance), often used to identify potential reversal or breakout points.
EXAMPLE
A stock bounces off £100 three times — £100 is support. It then fails to break above £130 twice — £130 is resistance. If it finally closes above £130 on strong volume, traders watch to see if £130 now acts as support on any pullback.
Educational content only. It is not personal financial advice.