Price has a memory. Previous high act as a resistance and previous low act as a support.
The same is explianed in detailed with chart example at :-
(1).
h t t p://stockcharts.com/help/doku.php?id=chart_school:chart_analysis:support_and_resistan
(2).
h t t p://www.investopedia.com/articles/technical/061801.asp
(3).
h t t p://en.wikipedia.org/wiki/Support_and_resistance
(remove space between http)
Hope this helps.
With best regards
Hitesh
The same is explianed in detailed with chart example at :-
(1).
h t t p://stockcharts.com/help/doku.php?id=chart_school:chart_analysis:support_and_resistan
(2).
h t t p://www.investopedia.com/articles/technical/061801.asp
(3).
h t t p://en.wikipedia.org/wiki/Support_and_resistance
(remove space between http)
Hope this helps.
With best regards
Hitesh
But I am looking to understand and if possible, find that how to ascertain the resistance/support, when we have no previous levels. Like, if some stock is at its highest high, then how to figure out at which level it will find the resistance. Same with the support levels.
Any idea bhai?