What is a support level?

Economics Stock Market Questions



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What is a support level?

A support level in the stock market refers to a specific price level at which a stock or market index tends to find buying support, preventing it from falling further. It is a psychological or technical level where demand for the stock is strong enough to counterbalance selling pressure, causing the price to stabilize or potentially reverse its downward trend. Traders and investors often use support levels as a reference point for making buy or sell decisions.