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 in the past.
The price level at which technical analysts note persistent buying of a share or commodity.If the share price of XYZ company is plotted on a chart, and the chart shows that over the period the price always seems to bounce back whenever it falls to, say, 320p, technical analysts would see that price as a "support level".The significance of the support level is that if the share price does break below it, that indicates a change of sentiment in the market towards the share, and may indicate the arrival of a new trading range. If the technical analyst is right in making this observation, he can buy or sell accordingly and make a profit.
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 in the past.
the price level at which technical analysts note persistent buying of a share or commodity.if the share price of xyz company is plotted on a chart, and the chart shows that over the period the price always seems to bounce back whenever it falls to, say, 320p, technical analysts would see that price as a "support level".the significance of the support level is that if the share price does break below it, that indicates a change of sentiment in the market towards the share, and may indicate the arrival of a new trading range. if the technical analyst is right in making this observation, he can buy or sell accordingly and make a profit.
Support level