Business Glossary

price level at which a security tends to stop falling because there is more demand than supply. Technical analysts identify support levels as prices at which a particular security or market has bottomed in the past. When a stock is falling towards its support level, these analysts say it is "testing its support," meaning that the stock should rebound as soon as it hits the support price. If the stock continues to drop through the support level, its outlook is considered very bearish. The opposite of a support level is a resistance level .

price level at which a security tends to stop falling because there is more demand than supply.