A point identified by technical analysis at which there is believed to be residual support for a share price. The existence of this support is premised on the belief that if there has previously been a great deal of activity in a share at a particular price level, then investors will be unwilling to dispose of those shares at a much lower price. When a share price breaks through a support level, it can typically then trade considerably lower before stabilising in a new trading range. The old support level then takes up a new status as a resistance level.
A price level at which technical analysis indicate a rebound. Opposite of Resistance.
A term used in technical analysis indicating a specific price level at which a currency will have the inability to cross below. Recurring failure for the price to move below that point produces a pattern that can usually be shaped by a straight line.
When an exchange rate depreciates or appreciates to a level where (1) Technical analysis techniques suggest that the currency will rebound, or not go below; (2) the monetary authorities intervene to stop any further down ward movement. See resistance point.
A price at which a currency or the currency market will receive considerable buying pressure.
A price level at which you would expect buying to take place.
Support levels are levels where a declining stock will find bottom and bounce up from. Supports are formed when a stock breaks above resistance and holds above that level: the old resistance then becomes support. Support levels are also formed when a stock spends a lot of time at one level and then breaks upward. The level that the stock spent most of the time at will most likely act as support. Key moving averages, such as the 18, 50, and 200, also act as support. We like to buy stocks as they bounce upward off of support levels and are backed by good money flow and buying.
Support is a forecasted price level where the rate of exchange should encounter buying pressure, which should stop the price/rate from falling any further. Main market participants (Investment Funds, Banks etc.) look for support and resistance levels to place their orders and thus they become, to a larger degree, self-fulfilling prophecies. See also RESISTANCE.
A price level at which the buying is expected to take place.
A technique used in technical analysis that indicates a specific price ceiling and floor at which a given exchange rate will automatically correct itself. Opposite of resistance.
A level in any given market that acts as a floor on price movement. If broken prices, in theory, are expected to move lower.
A system used in technical analysis that designates a specific price ceiling and floor.