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support area

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support level

–noun Stock Exchange.
a minimum price below which a specific stock is not supposed to fall, as because of the stock's inherent worth.
Also called support, support area, support zone.


Origin:
1950–55
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2009.
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Financial Dictionary

support level

A price at which a security or the market will receive considerable buying pressure. Technical analysts believe demand at the support level will tend to keep a stock's price from falling below the support-level price. A support level develops as investors miss purchasing a stock just before a price rise and resolve to buy the stock if it again reaches that level. Compare resistance level.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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