Short-term support levels are formed when the price falls to a new low but then rallies, as buyers who missed the first opportunity will be inclined to buy again if the price returns to that level out of fear of missing out twice. Similarly, short-term resistance levels are formed when the price reaches a new high but then retreats, as sellers who missed the initial peak will be inclined to sell again at that price point due to the same fear of missing out a second time. Both scenarios can result in enough new market activity at that price to overwhelm the existing buyers or sellers and create a new support or resistance level.