Dow Theory is used for studying the Demand and Supply of the stocks.First take the data for approximately 2years and plot in a line chart. Mark the top, higher top,bottom,higher bottom, lower top, lower bottom.
If the sequence is formed with higher bottom to higher top with high volume then the trend is Bullish.
If the sequence is formed with lower top to lower bottom with high volume then the trend is Bearish.
Buy when the trend is bullish.
Sell when the trend is bearish.
Support level is the level at which the buyers tend to enter the stock.
Resistance level is price point in which upward price movement is impeded by an overwhelming level of supply that accumulates at a particular price level.
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