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 because they think it's a good deal, which pushes the stock back higher. You'll hear traders talk about support when analyzing price charts, because it helps predict where a stock might find its footing if it drops. Support matters because if a stock breaks below a major support level, it often signals weakness and could fall further. For example, if TechCorp stock has bounced off $50 three times in the past month, traders might call $50 a support level and watch closely if it dips below that price.