#13 What are Support and Resistance in Stocks? | Stock Market Trading and Investment for Beginners

Introduction to Support and Resistance00:00:00

The video introduces the basics of stock market trends and explains that understanding support and resistance levels is essential for determining when to buy, sell, or hold stocks.

Understanding Resistance Levels00:01:04

A resistance level is a price point that prevents a stock price from rising further. When the price consistently hits this level and bounces back down, it indicates a barrier for upward momentum.

Breakouts and Trends00:06:01

When a stock price successfully breaks through a resistance level, it is called a breakout. This often signals the start of an uptrend, showing that the stock has gained significant momentum.

Understanding Support Levels00:07:09

Support is the counterpart to resistance; it is a price level that prevents a stock from falling further. It acts as a floor where buying pressure often causes the stock to bounce back upward.

Practical Application on Charts00:08:43

Using the Meralco stock chart as an example, the video demonstrates how to identify multiple support and resistance levels over time and explains what happens when these levels are breached.

Summary and Conclusion00:17:21

The video concludes by summarizing that resistance stops upward movement while support stops downward movement. Understanding these levels is key for future lessons on when to execute buy, sell, or hold strategies.