SUPPORT LEVEL Meaning and
Definition
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Support Level:
A support level is a specific price level or range at which a financial instrument, such as a stock or index, has historically found buying interest and prevented the price from falling further. It refers to the point where demand exceeds supply and buyers are willing to enter the market, thus providing support to the price.
Support levels are key technical analysis concepts used by traders and investors to make decisions regarding buying or selling securities. They are usually represented on charts as horizontal lines or zones. When the price approaches the support level, it is expected to bounce back since market participants perceive the asset to be undervalued at that point. This level is seen as a significant psychological or fundamental area where investors believe the stock's price is attractive enough to buy, resulting in increased buying pressure. If the support level holds, it strengthens the belief in a potential upward movement.
However, if the support level is breached, it may indicate a shift in market sentiment and trigger further downward pressure on the price, potentially leading to a trend reversal or acceleration of selling. Technical analysts often look for confirmation of support levels with other indicators, such as volume patterns or trend lines, to increase the reliability of the level and make informed trading decisions.
In summary, a support level acts as a floor for a stock's price, indicating a historical level of buying interest where demand exceeds supply, potentially providing a base from which the price can rebound.
Common Misspellings for SUPPORT LEVEL
- aupport level
- zupport level
- xupport level
- dupport level
- eupport level
- wupport level
- sypport level
- shpport level
- sjpport level
- sipport level
- s8pport level
- s7pport level
- suoport level
- sulport level
- su-port level
- su0port level
- supoort level
- suplort level
- sup-ort level
Etymology of SUPPORT LEVEL
The etymology of the word "support" can be traced back to the Latin word "supportare", which is a combination of "sub" (meaning "under") and "portare" (meaning "to carry"). The word "support" entered the English language in the 14th century, derived from the Old French word "supporter".
The term "level" has its roots in Middle English, derived from the Old French word "livel" meaning "even, level". It can be traced back further to the Latin word "libella", meaning "a balance, level".
When these two words are combined to form "support level", they refer to a specific point or threshold at which assistance or backing becomes necessary or provided.
Similar spelling words for SUPPORT LEVEL
