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An effective lower bound on prices supported because of many willing buyers at that price level.


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).


Increased demand for a security. Compare resistance.


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.


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.
References in periodicals archive ?
Any domestic support price at the initial equilibrium price would become ineffective unless accompanied by an export ban.
Any domestic support price at the initial equilibrium price would have to increase proportionally not to become ineffective.
In the case of wheat, the domestic support price (expressed in USS)S appears to be a reasonable proxy for that "normal" price.
is the support price (expressed in USS) and 0 = [zeta] = 1.
l-X) is close to unity) and there is a strong support price policy set in domestic currency terms (i.
Generally, one could expect the support price to influence differently the domestic market prices when the support price is effective, i.
Results were statistically poor, and generally not supportive of the view that the support price variable looses its significance when it is not effective, as defined above (in fact sometimes the opposite was suggested
The same is true for the (log of) exchange rate (PRs per USS) time series, as well as for the (log of) support price (in USS) time series.
The results suggest that the domestic support price (in US$) is a key determinant of the domestic price, quite independent from the international price, even in the long-run.
There is only weak evidence of the existence of long-run co-integrating equations between domestric price, international price, exchange rate, and (when applicable) domestic support price (in foreign currency terms) for key agricultural commodities in Pakistan.
In the case of wheat, the empirical analysis suggests that the domestic support price (in foreign currency terms) has been a key independent explanatory variable, even in the long-run.
Finally, the attempt to isolate domestic prices for agricultural commodities from variations in the international prices, for wheat in particular through the support price mechanism, would hamper the macroeconomic adjustment to terms of trade shocks (international prices of wheat, cotton, rice, and sugar relative to the international prices for major imported inputs).

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