Charts are an essential instrument for technical analysts because they provide a graphical representation of the movement of a stock over a certain amount of time. For illustration purposes, a technical analyst could highlight particular locations on a chart and label them as support or resistance levels. The stock's prior lows, which are located below the current trade price, serve as markers for the support levels, while the stock's previous highs, which are located above the current market price, serve as markers for the resistance levels. If the stock price were to break below the support level, the stock analyst would interpret this as an indication of a negative trend, whilst a break above the resistance level would signal a positive view