Barchart.com's Trader's Cheat Sheet provides information on the nearest levels of support and resistance for a specific stock or asset.
- Support zone refers to a price level at which there is historically a higher demand for the stock, preventing it from falling further. It is like a floor that supports the price.
- The nearest support zone for this stock is at $100, which means that historically there has been buying interest in the stock when it reached or approached this price level.
- The term "previous resistance" means that $100 was a price level at which the stock previously struggled to move above, but now it is expected to act as a support level.
- The next support zone is at $80, indicating that if the stock price drops further, there has previously been demand around this price level, potentially halting further decline.
- On the other hand, resistance zone refers to a price level at which there is historically a higher supply of the stock, preventing it from rising further. It is like a ceiling that limits the price increase.
- The nearest resistance zone for this stock is at $125, meaning that historically there has been selling pressure around this price level, preventing the stock from surpassing it easily.
- The next resistance zone is at $140, suggesting that if the stock price continues to rise, there has previously been supply at this price level, potentially hindering further increase.