Support (Support Level)

AAA

DEFINITION of 'Support (Support Level)'

The price level which, historically, a stock has had difficulty falling below. It is thought of as the level at which a lot of buyers tend to enter the stock.

Often referred to as the "support level".

Support

INVESTOPEDIA EXPLAINS 'Support (Support Level)'

If the price of a stock falls towards a support level it is a test for the stock: the support will either be reconfirmed or wiped out. It will be reconfirmed if a lot of buyers move into the stock, causing it to rise and move away from the support level. It will be wiped out if buyers will not enter the stock and the stock falls below the support.

VIDEO

RELATED TERMS
  1. Price By Volume Chart - PBV

    A horizontal histogram plotted on the chart of a security, which ...
  2. Sideways Trend

    Describes the horizontal price movement that occurs when the ...
  3. Neckline

    A level of support or resistance found on a head and shoulders ...
  4. Cover On A Bounce

    The covering of a short position after it has reached and bounced ...
  5. Chartist

    An individual who uses charts or graphs of a security's historical ...
  6. Congestion

    1. A market situation whereby the demand of contract holders ...
Related Articles
  1. Support And Resistance Basics
    Active Trading Fundamentals

    Support And Resistance Basics

  2. Trade On Support For The Best Exit Strategy
    Active Trading Fundamentals

    Trade On Support For The Best Exit Strategy

  3. Trading With Support And Resistance
    Active Trading Fundamentals

    Trading With Support And Resistance

  4. Tweezers Provide Short-Term Precision ...
    Forex Education

    Tweezers Provide Short-Term Precision ...

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center