Support is a price floor where buying emerges. Resistance is a ceiling where selling pressure appears. When price breaks through resistance on high volume, it often signals a significant move higher.
Answer: Support at $50. Repeated bounces off a price level establish it as support — buyers consistently step in at that price.
Answer: Continued upside momentum. High-volume breakouts above resistance suggest strong conviction — the price often continues upward.
Answer: It often becomes a new resistance level. Broken support frequently flips to resistance — what was once a floor becomes a ceiling on any bounce.
Answer: Price breaks resistance but quickly reverses back below it. False breakouts trap buyers — price pierces resistance briefly, then falls back, flushing out weak hands.
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