In a very simple terms support means to hold up something, so that it does not fall further. In the world of trading and investing support is a tool to find a point or a level on a chart that prevents the price of a stock/index from falling further. Surprisingly, you will find most of the buying activities here. Support is the level at which the demand is powerful enough to stop the stock/index from falling any further. Whenever the price falls to the support point, it is expected to bounce back.
« Back to Glossary Index