StockYanSupport
Support is a price level where a falling stock has stopped and turned up before. Buyers saw the price as cheap there, so they bought and the fall paused.
The more times a price has bounced from the same level, the more people notice it and the more attention it gets next time.
Resistance
Resistance is the opposite. It is a level where a rising stock has stalled before, because holders sold to take profit or to get out at break-even.
A common resistance is the 52-week high, the highest price of the past year. Many holders watch it.
When levels break
Levels do not hold forever. When the price closes clearly above resistance on good volume, it is called a breakout. When it closes clearly below support, it is called a breakdown.
After a breakout, old resistance often becomes new support. Traders call this a role reversal.
Round numbers and old highs
Prices often react near round numbers, like Rs 500 or Rs 1,000, because many people place orders there. Old highs and lows from past months work the same way.
How to find them
You can draw levels yourself with a few simple rules.
- Look for prices where the chart turned several times.
- Treat a level as a zone, a small range of prices.
- Use daily closes and ignore one-off spikes.
- More touches means more people are watching.
Why adjusted prices matter
In NEPSE, bonus and right shares lower the share price at book closure. On a raw chart this leaves a gap that looks like a sharp fall, and levels drawn across that gap can be wrong.
StockYan can show prices adjusted for bonus and right shares, so old levels line up with today's price.
Using levels to think ahead
Levels help you think before you trade. Note the nearest support and resistance, then look at how far the price could move each way. If resistance is close and support is far below, the room to rise is small compared with the room to fall.
In NEPSE a stock can move at most 15% in a day, so a level far from the price can take several sessions to reach.
A NEPSE example
Here is StockYan's support and resistance ladder for Nabil Bank (NABIL) at the close on 27 Oct 2026, when it traded at Rs 542.
The nearest support was around Rs 532.43, about 1.8% below the price. The price had touched this zone 8 times between 10 Mar and 28 Sep 2026. A deeper support sat near Rs 509.29, with 10 touches.
The nearest resistance was the 52-week high of Rs 581, about 7.2% above the price. Between the two, the stock had room to move in either direction.