Support and resistance levels are key concepts in technical analysis used by traders to identify potential price points where an asset may reverse direction. A support level is a price point where buying interest is strong enough to overcome selling pressure, preventing the price from falling further. Conversely, a resistance level is where selling interest is strong enough to prevent the price from rising, often leading to a price reversal. Traders often use these levels to make informed decisions about buying and selling. When the price approaches a support level, it may be seen as a buying opportunity, while approaching a resistance level may signal a selling opportunity. Understanding these levels can help traders manage risk and improve their trading strategies.