I have seen these terms used and am wondering how much is actually a real thing vs finding patterns where there are none or that aren’t going to be predictive.
For instance from a recent article on Tesla:
“If the stock does not hold support around the $153 level, the upper bound of a consolidation range from October 2020, there is a risk of it dipping to the lower bound around $130.” https://www.google.com/amp/s/www.benzinga.com/amp/content/30088223
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Absofukinglutely not reliable.
Long story short, the support level and resistance level are based on past prices and the “observed” level of value. Its not guaranteed by anything BUT by what “used to happen”
If something happens that is unprecedented (i.e musk repeatedly shoots himself in the foot), then everything goes out the window.
Remember, support/resistance are not based on actual fact, event, or company value, but literally “the previous price”
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