The 2850 level on the Dow is an example of a significant support level. The market finds continuous strong support at this level in February, March, April, and May. Strong buying emerges at the 2850 level because it may represent an area where investors view stocks as being cheap, relative to alternative investments such as bonds or cash. Heavy selling occurred in the 3000 level as investors became cautious, believing the market was overvalued at this level.

In between the most significant horizontal trend lines of long term highs and lows are many intermediate levels of support and resistance. For example, the price of crude oil tended to gravitate in the 1980's to OPEC's benchmark level of $18.00 a barrel. If oil was trading around $20.00 a barrel, the $18.00 level was considered support, and might stop or slow any initial price decline. If oil was trading around $16.00 a barrel, the $18.00 level was considered resistance, and might impede any initial price rise.

The May 89 crude oil rise in December and January, and then find resistance from "out of the blue" in the middle of January at the $18.00 level. The October 90 contract finds important support in the $18.00 level in late November, early December, and again in June.

Some horizontal support and resistance lines may often identify significant fundamental price levels in the commodity. For example, a horizontal support line may represent an important fundamental price level, such as the cost of production of the commodity. A long-term horizontal resistance line for a commodity may be a price level where cheaper alternative commodities will begin to replace the higher priced commodity. The Dow 3000 level might have been considered a fundamental area, where investors felt stocks were too expensive versus other investments. The $18.00 level in crude oil might represent an area where suppliers increase or decrease supply, or where consumer demand increases or decreases, depending on the level of the market.