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An effective lower bound on prices supported because of many willing buyers at that price level.
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In technical analysis, a price that a security does not or only rarely falls below. Technical analysts identify a support level by looking at past performance. It is seen as an indication to buy the security, which will increase the demand, causing the security's price to move above the support level. The demand comes from investors who fail to buy the security at the support price, and resolve to do so if it reaches that price again. If buyers are not forthcoming, however, the security falls below the support level. When this occurs, the price of the security will likely continue to drop until it finds another support level. See also: Price floor, Resistance (Resistance level).
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


Increased demand for a security. Compare resistance.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


Support, or support level, is the bottom of a stock's current trading range, or the point at which the price is low enough to stimulate demand among investors. Strong buying at the support level moves the stock's price up from its low.

For example, if every time stock A's price drops to $40 investors begin to buy, then $40 is considered its support. But a trading range isn't fixed, so the support level tends to move higher or lower over time in response to changing market conditions and investor attitudes.

If stock A falls to $38 without a surge of buying, the current support line has been breached. This may be the result of a falling market or a bearish assessment of the stock's value. On the other hand, if demand increases at $43, that may become the new support level.

Conversely, the level at which supply exceeds demand and investors typically sell a certain stock is called resistance. It's the point that's considered the top of a stock's current trading range.

Technical analysts use the concepts of support and resistance in anticipating future stock prices.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.


The total amount provided on behalf of an individual. Support includes food, lodging, and other necessities as well as recreation and other nonessential expenditures. Support is not limited to necessities and can be as lavish as the taxpayer can afford. The amount of support in determining whether an individual qualifies as a dependent.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
References in periodicals archive ?
Usually, small farmers receive prices that are even lower than the support price.
Increase the government support price of palay from P17 to P22 per kilo!
Patole burnt a stack of food grain stalks on the State Legislature premises, as a symbolic protest against the delay on the part of the state government in hiking the minimum support prices of cotton, soya bean and pulses produced in Maharashtra.
Sugarcane Support Price Mill-Gate Delivery (Per 40 Kg) Year Punjab Sindh Khyber Quality Premium PakhtunKhawa 2000-01 35.00 36.00 35.00 0.50 2001-02 42.00 43.00 42.00 0.50 (Indicative price) 2002-03 40.00 43.00 40.00 0.50 2003-04 40.00 41.00 40.00 0.50 2004-05 40.00 43.00 40.00 0.50 2005-06 45.00 60.00 45.00 0.50 2006-07 60.00 67.00 65.00 0.50 2007-08 60.00 67.00 65.00 0.50 2008-09 80.00 81.00 80.00 0.50 2009-10 100.00 102.00 100.00 0.50 [GRAPHIC OMITTED]
According to the WTO rules, a country could not provide subsidy of more than 10 percent of the agriculture contribution in the Gross Domestic Product (GDP) of a country and claimed that fixing Rs 950 per 40 kilogramme as wheat support price is much higher.
Typically, when international prices for wheat (in US$) have surged, domestic prices have not followed tip, and the same has been true when international prices have dipped, suggesting, in the first instance, that measures were taken to protect the domestic consumers, and in the second instance, the domestic producers, including through the support price mechanism.
Unfortunately, all recommendations of highest forum and demands of the PKI have been thrown into dustbin as higher authorities delayed the decision on import duty (the notification is not issued yet) and put the issue of support price on back burner, Mr Khokhar laments.
The efforts of the Telangana government to provide minimum support price to the farmer has become a role model to the entire country," the Chief Minister said at a high-level meeting at Pragathi Bhavan, his official residence.
HYDERABAD -- The Cane Commissioner Sindh Mohammad Afzal has assured that the government will announce support price of cane within three days.
The PTI government is also working on a plan to enhance the wheat support price to encourage the farmers to plant additional area with the staple crop, which will ensure food security in the country.
The Department of Agriculture (DA) is considering to adapt an industry proposal of implementing a support price for pork and chicken meat to ensure raisers' income during times of oversupply and falling meat prices in the market.
New Delhi: The Cabinet has approved a Rs 105 per quintal hike in the minimum support price of wheat to Rs 1,840 per quintal for 2018-19 season, sources said.

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