Definition

Noun: 1. (Finance/Trading): A specific price point for a security (like a stock) at which buying interest is historically strong enough to prevent the price from falling further. It is a price level where demand is thought to be concentrated.

Usage

The term is used to analyze and describe price charts, indicating a zone where a declining price may pause, reverse, or consolidate due to increased purchasing activity. - Technical analysts watch the support level closely for signs of a bounce. - The stock found a support level at $50 and began to rise.

Advanced Usage

• "To test support": When a security's price declines to approach a known support level to see if it will hold.
  • The market is currently testing the key support level at the 200-day moving average.
• "Support zone": A price range, rather than a single exact price, where buying interest is concentrated.
  • The chart shows a strong support zone between $45 and $48.

Variants and Related Words

• Resistance Level (n): The opposite concept; a price point where selling interest is strong enough to prevent the price from rising further.
• Support (n): In a general trading context, the act of buying or the price level that prevents a decline.
• Floor (n): A colloquial term for a major or ultimate support level.

Synonyms

• Demand Zone
• Price Floor (in technical analysis contexts)

Related Phrases

• "Hold support": The price stops falling at the support level.
  • If the price can hold support, we may see a rally.
• "Break down through support" / "Break support": The price falls decisively below the support level, often leading to further declines.
  • The bearish trend confirmed when the stock broke support at $30.

Related Idioms/Concepts

• "A line in the sand": While not a financial term, a support level is sometimes described this way, representing a critical point that, if crossed, changes the market outlook.
• "Bouncing off support": A common description for when the price declines to a support level and then immediately moves higher.

Noun

1. (stock market) the price at which a certain security becomes attractive to investors