Click to learn more. Conclusion Support and Resistance Printable PDF Version Support and resistance represent key junctures where the forces of supply and demand meet. Supply is synonymous with bearish, bears and selling.
Demand is synonymous with bullish, bulls and buying.
These terms are used interchangeably throughout this and other articles. As demand increases, prices advance and as supply increases, prices decline. When supply and demand are equal, prices move sideways as bulls and bears slug it out for control. Support is the price level at which demand is thought to be strong enough to prevent the price from declining further. The logic dictates that as the price declines towards support and gets cheaper, buyers become more inclined to buy and sellers become less inclined to sell.