Supports and resistances are an important part of any trend analysis. Supports hold the price and don't let the price go down further and resistances doesn't let the price go higher. When a support is broken (cant hold the price) it will turn to be a resistance, but after confirmation. Confirmation is when price goes back to test the support as resistance and it acts as a resistance, doesn't let the price go higher. That's when its confirmed that the support has turned to be a resistance now. The same goes for resistances becoming supports after price breaks them and we get the confirmation.
Supports and resistances are phycological price targets that people believe we can not break. It can be the previous high/low which is a historical point, or Moving averages which usually act as a good and are considered technical point, or a specific price target which is pure psychological support/resistances (like $5k, $10k, $20k, or even $7k, $6.5K).
I use support/resistances a lot alongside with indicators, chart patterns, and candle stick patters. I will try to be descriptive as much as possible in my ideas and include an educational section each time, so you can educate your self by reading real case scenarios and using real time charts. I believe that's the best way to learn.
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As we see the previous support is so strong and we couldn't break it, is the price going down again? Its unlikely that the price breaks through %50 line of the because there is almost 3 supports right now at the exact same spot. MA50, BB20 and the %50 line. MA50 just had been tested (red candle #3) and kinda the same goes for %50 line (green #4, though its just the shadows and not the body of the candle). SO its unlikely that we close below $6300.
PS. Always remember supports/resistances are not an exact line (price), they are more kinda a range, so if %50 line or MA are at $6350, nothing happens if you go down to like $6300. ($50 is not always the range, it depends, it might be $10 or $100, or ….)
Keep an eye on , it is going down, Im assuming to see higher lows in , not going below ~50.
Remember that "The stock market is a device for transferring money from the impatient to the patient."