$SLF /USDT

In technical analysis, support and resistance levels are key concepts that help traders predict future price movements in financial markets.

Support is a price level where an asset tends to find buying interest, preventing it from falling further. It acts like a "floor," where demand tends to be strong enough to halt or reverse a downward trend. Traders often look for previous support levels to identify potential entry points, as these areas may signal buying opportunities.

On the other hand, resistance is a price level where an asset faces selling pressure, preventing it from rising further. It functions as a "ceiling," where supply outweighs demand, limiting upward movement. Traders observe resistance levels to identify exit points or short-selling opportunities, as prices often pull back from these levels.

Both support and resistance are not absolute, and when broken, they can reverse roles. For instance, if the price breaks above resistance, that level can turn into a new support. These levels are dynamic and shift based on market conditions, influenced by factors such as volume, news, and overall sentiment.

Mastering support and resistance analysis is essential for making informed trading decisions, allowing traders to manage risks and optimize returns.

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