Support and resistance are key concepts in technical analysis used by traders to identify potential price levels where an asset may reverse direction. Support refers to a price level where buying interest is strong enough to overcome selling pressure, preventing the price from falling further. Conversely, resistance is a price level where selling interest is strong enough to overcome buying pressure, preventing the price from rising. Traders often look for these levels on charts to make informed decisions about entering or exiting trades. When prices approach support, traders may consider buying, while approaching resistance may signal a selling opportunity. Understanding these levels can help in predicting future price movements.