Support is a price zone where historical buying interest has been strong enough to pause or reverse a decline. It forms because traders who missed a prior rally remember the level where price bounced and are willing to buy there again, while short sellers who are wrong at that level cover positions. The more times a level has been tested without breaking, the more significance it carries — both because more traders are watching it and because each successive test typically happens with lower selling pressure. When a support level breaks convincingly on heavy volume, it often becomes resistance as trapped buyers look to exit at breakeven. Moving averages like the 50 or 200 EMA act as dynamic support, adjusting as price evolves rather than remaining at a fixed price.
