Support

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Support

An effective lower bound on prices supported because of many willing buyers at that price level.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Support

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

support

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.

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.

Support

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 ?
(5) Any domestic support price at the initial equilibrium price would then become ineffective.
The meeting also asked the provincial governments to ensure minimum support price of sugarcane crop through their sugarcane commissioners.
Higher support prices for kharif pulses had resulted in a sharp jump in acreage and production is estimated to rise to 6 million tonnes in the kharif season of the 2010-11 crop year from 4.3 million tonnes in the year-ago period
The Economic Coordination Committee (ECC) of the Cabinet on August 15, approved the cotton and rice policies for 1990-91 fixing the minimum support prices of cotton and procurement prices of rice.
Mahmood said the government should pay back farmers Rs30,000 per acre and to fix minimum support price for major crops like done in other neighbouring nations.
LAHORE -- Ameer, Jamaat e Islami, Pakistan, Syed Munawar Hasan has stressed upon the government to immediately announce the support price of wheat and sugarcane in order to remove unrest among the growers.
The objective behind purchase of the wheat is to meet the food requirements of the people of the province purchasing it from the zamindars on the support price.
Earlier, farmers used to get a minimum support price of rupees 2800 for their cotton yield at the Abohar Mandi, but the State Government appears to have developed some reluctance, allowing private traders to exploit the situation.
The absence of a support price has also pushed cotton farmers towards wheat and sugar cane for which the government announces support prices every year to ensure a fair return to growers.
The move of increasing wheat support prices would woo the growers to strove hard and get the due prices for their labour, he added.

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