What Is Support? Meaning & Example
Definition
Support is a price area where buying interest has tended to stop declines. Traders watch support levels for potential bounces or breakdowns.
Related terms
Resistance is a price area where selling pressure has tended to stop advances. A break above resistance can signal a new move higher.
BreakoutA breakout happens when price moves decisively beyond a support or resistance level or out of a range. Breakouts on strong volume are often seen as more convincing.
Technical AnalysisTechnical analysis studies price charts, volume and indicators to look for patterns and trends. It focuses on market behavior rather than company finances.
What is Support?
Support is a price area where buying interest has tended to stop declines. Traders watch support levels for potential bounces or breakdowns.
Can you give an example of Support?
If a stock has bounced near $30 three times, $30 is viewed as a support level.