This is the most basic Technical Analysis indicator. Support is a price which a stock refuses to fall below and Resistance is a price that a stock cannot seem to break through. Below is a graph for Qualcom. Notice how QCOM refuses to go below $100 between Jan. and May. Notice how the price of QCOM doesn't break above $200. Also, had problems breaking through $50 and then $100, and then $150. This is resistance. It is at these prices that a battle takes place between the bulls and the bears. Click here to bring up a random stocks chart and see if you can identify support and resistance levels. Note that previous resistance levels can act as support and previous support levels can act as resistance as happens at $50 on graph below. One of the strangest things about support and resistance is that the often happen at or around round numbers, like 1, 5, 10, 20, 30, 50, 75, 100, 150, 200, etc.