Friday, February 15, 2008

Support and Resistance Levels

In India if you listen to Investment news or view TV Channels like CNBC TV18 or NDTV Profit, You will often hear discussions on support and resistance levels.
How do these support and resistance level come into play ? How are they formed ?
These are price levels at which prices have stabilized in the past and is known as support and when it fails to cross a point and comes back it is the resistance point. Since everyone is watching these points and act in conjunction these points are worth giving a thought and taking your positions of sell and buy. So keep a note of these points and trade well.

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