The term "obvious levels" refers to a concept in technical analysis, which is used by traders and investors to analyze stocks or other financial instruments. It involves identifying patterns that have formed on charts based on historical price movements, with the aim of predicting future trends.
In this context, "obvious levels" refer to key points at which a security's price has previously reached support (where demand is high enough to prevent further declines) or resistance (where supply is so great that it prevents prices from rising further). These levels are considered obvious because they have been tested multiple times and failed to hold, indicating a lack of conviction in the market.
Traders use these levels as potential areas for price reversals, either upward if support has held or downward if resistance has been broken. By monitoring how prices interact with these levels, traders can gain insights into future trends and make more informed decisions about when to buy or sell a security.