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Investing & the Stock Market vocabulary · Technical & Fundamental Analysis

Support level

Meaning in investing & the stock market, with examples

/səˈpɔːrt ˌlevl/nounCommon term

In investing & the stock market, support level means: A price level where a falling stock has often stopped and turned back up in the past, because buyers tend to step in at that price.

In Turkish: destek seviyesi, destek

How it is used

Technical analysts identify, test and watch support levels. A price can bounce off support, hold support or break below it. When support breaks, chartists often expect further falls. In reports and talk it is often just 'support'.

Example sentences

  1. The index is testing an important support level at 9,500 points.

  2. If the stock breaks this support level, the next one is around 42 lira.

Common collocations

  • key support level
  • test support
  • break support
  • hold support
  • bounce off support
  • resistance levelA price level where a rising stock has often stopped and turned back down in the past, because sellers tend to appear at that price.
  • technical analysisA way of studying past prices and trading volume on charts to identify trends and patterns that traders use to time their buying and selling.
  • moving averageThe average price of a security over a fixed number of recent days, recalculated every day, used to smooth out short-term swings and show the trend.
  • candlestick chartA price chart in which each period is shown as a 'candle': the body shows the opening and closing prices, and thin lines show the highest and lowest prices.

More terms: Technical & Fundamental Analysis

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This page explains English vocabulary for learners. It is not financial advice.