Support

Support is a price level where a stock has repeatedly stopped falling and bounced back up. Think of it as a floor—buyers keep stepping in at that price, preventing the stock from dropping further. You'll hear traders talk about support when analyzing charts (visual graphs of price history), because it helps predict where a stock might find a bottom during a selloff. Support matters because if a stock breaks below a strong support level, it often signals weakness and could fall much further. For example, if TechCorp stock has bounced off $50 three times over six months, $50 becomes support—traders watch to see if it holds or breaks.