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Support and resistance are key concepts in trading used to identify price levels where a market tends to reverse or pause. Support is the price level at which a downtrend is expected to halt due to buying interest. Traders believe prices will not fall below this level. Resistance is the opposite—it’s a level where an uptrend may pause or reverse due to selling pressure. These levels are often used in technical analysis to make decisions about entry and exit points. When price breaks through support or resistance, it can signal strong momentum, usually leading to further movement in the breakout direction.