support level

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Related to support level: Resistance level

Support level

A price level below which it is supposedly difficult for a security or market to fall. That is, the price level at which a security tends to stop falling because there is more demand than supply; can be identified on a technical basis by seeing where the stock has bottomed out in the past.


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).

support level

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support level
A price at which a security or the market will receive considerable buying pressure. Technical analysts believe demand at the support level will tend to keep a stock's price from falling below the support-level price. A support level develops as investors miss purchasing a stock just before a price rise and resolve to buy the stock if it again reaches that level. Compare resistance level.
References in periodicals archive ?
Emaar Properties still has an uptrend on the medium term chart, but the closing price is very negative, so I recommend to place stop loss near support level of Dh5.
For California pools, the mean support levels for 1987 and 1988 originations are actually higher than market averages.
In terms of stock performance, El-Saeed said that the Commercial International Bank's (CIB) shares are likely to break the support level at EGP 48, having closed at EGP 47.
Elsewhere in Saudi, the Tadawul index may hit support level of 5,790 by next quarter, said Al Ashri.
This week, AB Capital expects the PSEi swinging at the suggested immediate support levels due to a lack of fundamental market direction.
El-Saeed expects the EGX30 will move between a support level of 7,900-8,000 points during this week's trading.
Abu Dhabi may hit its lowest level in 2015, if it breaches support level of 4,190, so I advise traders and investors of high risk of trading in this area," said Al Ashri.
El-Saeed expected investors to continue this trend this week, predicting EGX30 to fall to the next support level at 8,050-8,000 points.
Emaar Properties may fall further and breaches the support level of Dh5.
Analyst Osama Al Ashry said he expected Arabtec's share prices to continue dropping to Dh2, and that prices have a support level at Dh1.
Local stockbrokerage AB Capital Securities said the index had tried to retest the previous resistance level at 7,862-the index peak so far-in the week but profit taking brought it down near the 7,800 psychological support level.
Power Course Instructor's Response: Take a look at the chart below- You will see that a support level is noted.

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