Tested the water financial definition of tested the water
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The event of a price movement
that approaches a support level
or a resistance level
established earlier by the market
. A test is passed if prices do not go below the support or resistance level, and the test is failed if prices go on to new lows or highs.
The attempt by a stock price or a stock market average to break through a support level or a resistance level. For example, a stock that has declined to $20 on several occasions without moving lower may be expected to test this support level once again. Failing to fall below $20 one more time would be considered a successful test of the support level and a bullish sign for the stock.
References in periodicals archive
The Center for Disease Control, in Atlanta, Georgia, inspected and tested the water
quality of 5000 hot tubs during the years 1999-2000.
SwRI tested the water
+ EGR system on an engine under laboratory conditions.
Unconfirmed rumors have it that Phillips has unsuccessfully tested the waters
for an investment letter edited by Lou Dobbs.