The AI (ChatGPT) Stock Investing Handbook: Support and Resistance Levels

Here is the response from ChatGPT for the prompt support level entered on January 9, 2023.

A support level is a price at which there is an increased likelihood that buyers will enter the market and purchase an asset, resulting in an upward price movement. This can occur because the price at the support level is considered to be a "good value" by many market participants, or because there is a large concentration of orders to buy the asset at that price. As a result, the asset's price tends to "bounce" off the support level rather than breaking through it. If the price of the asset does break through the support level, it may be seen as a sign that the market trend is shifting, and the support level may become a resistance level, a price at which there is an increased likelihood that sellers will enter the market and sell the asset, resulting in a downward price movement.

Here is the response from ChatGPT for the prompt support level entered on January 9, 2023.

A resistance level is a price level at which there is a tendency for the price of an asset to stop rising and potentially reverse. Resistance levels are formed when there is a concentration of selling pressure at a particular price, which can prevent the price from rising any further. This selling pressure may come from traders who believe the price has become overvalued and are looking to take profits, or from other traders who have placed sell orders at that price level. When the price of an asset approaches a resistance level, it may struggle to break through and may eventually turn back down.