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A technical analysis tool. A chart pattern depicting the period when the supply and demand of a certain stock are in relative equilibrium, resulting in a narrow trading range. The merging of the support level and resistance level.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
In technical analysis, a situation in which the support level and the resistance level are roughly the same for a given (usually long) period of time. That is, a base occurs when a security trades only in a very narrow range. A base indicates that the supply and demand for a security are at an equilibrium. This means that the security is unlikely to be bullish or bearish in the near future.
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