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Support and look out for it


What is Support Level?

Support level is the price from where stocks, slow down, stop moving downwards and they bounce back. Here bulls sentiments are stronger which push the price upwards.
Support is the level where investors believe that price will move higher and they start accumulating the stock results in increase in price.
Breakout:The markets sentiments keep on changing and may results in a breakout due to various reason. It can be fundamental or other market event, etc. While a support gives a buy signal to the traders, breakout signal that the bulls are losing and the price falls further.

Therefore it is important to look at the other technical parameters like Volume, MACD, RSI, Candlestick etc., when trading near support.

Once the support is broken its role will be reversed and it will serve as a resistance in future.
What decides the strength of Support?
A number of factors a trader may want to look around to see the strength and to confirm it. They are:

1.Length: The longer the duration of Support the more reliable it is. Longer duration shows more points, a price is hitting showing the positive sentiments.

2.Height: The broader the distance between the Support and Resistance the more powerful it is.

3.Volume: Higher volumes add strength to the support. Higher volumes indicates more traders have the same sentiment at a particular time frame.

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