Supports and resistances

Technical supports or opponents are places where an instrument has historically stopped earlier in the price graph.

An earlier peak in the share price can later be described as a resistance / resistance area through which the share must "break".

You have the opposite if the price is above the previous peak and falls down, then these previous peaks are often referred to as supports / support areas, at which the falling share price can stop.

It often takes a little more "energy" and volume for a stock price to go through a resistance or support.

The reason for this is that these points are places where many investors have made an entry or exit in the past, this can be confirmed by the fact that there are higher volumes at these areas.

The psychological also comes into play here. Many investors will try to sell out at "zero", if the share price reaches the top where they bought in earlier. Or it happens that they have wanted to sell out before they lose when the share approaches the support point where they traded in earlier, thus the selling pressure begins to decrease when the price reaches the support and no one wants to sell with a realized loss.