One of the first Technical Analysis concepts that traders learn is that of Support and Resistance.
Support is simply a price level below the current price.
When the price falls to that level, traders find it attractive and they enter the market with buy trades causing the price to rise.
In economic terms, demand is greater than supply.
The more times the market declines to that specific level and then bounces off, the more significant and important the support level is.
And the more significant the support is, as traders we feel more confident that the market will bounce off once more.

There are additional parameters that add to the significance of a support level.
Volume is one of them.
Obviously, it makes good sense to assume that a support level with buy trades in high volumes is more significant than one in low volumes.
Additionally, time is another important factor.
By this, I mean how recently the buying activity took place in the support area.
The more recent, the more important.
I am sure you would agree with me that you would feel much more confident buying into a support area that has been tested a few times in the last weeks or months compared to the last decade.
It goes without saying, that all of the above apply to the concept of resistance as well.

But what is resistance?
Resistance is a price level above the current price.
When the price gets to that level, traders find it attractive and they enter the market with sell trades causing the price to decline.
In economic terms, demand is greater than supply.

Is it safe to assume that when the price hits the support or the resistance level that consequently the price will rebound?
Unfortunately, the answer is no.
Nothing is 100% guaranteed!
Just tendencies.

Now you know support and resistance!