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Finance Dictionary and Glossary of Investment Terms
A level below which (the thinking goes) a stock will not fall. It''s the price at which investors seem to come forward to buy, perhaps because it''s as low as the stock seems to go, or because the apparent bargain becomes irresistible. The trading range between the support level and resistance level is known as a ""channel.""
A price level below which it is supposedly difficult for a security or market to fall. That is, the price level at which a security tends to stop falling because there is more demand than supply; can be identified on a technical basis by seeing where the stock has bottomed out in the past.