Support Level
Support level is a price that a stock reaches in its downward movement but hase difficulties falling above that level. Support level is determined by the stock's historical lows, often by the last historical low.
Support level is an important indicator used by investors to determine the right position to enter the stock. When the stock reaches support level, many investors will purchase the stock, as it is on its low, which will create an upward movement in the stock price.
| Related Terms: Breakout Breakdown Descending Triangle Congestion |