Support is a price level where a downtrend can be expected to pause due to buying interest. When support breaks, it often becomes a new resistance level. Traders use support levels to identify potential entry points or to set stop-loss orders below these levels.
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Quick Reference
Category
technical
Difficulty
Beginner
Reading Time
1 min
Related Terms
Moving Average
A technical indicator that smooths price data over a specifi...
Resistance
A price level where selling pressure prevents further price...
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A momentum oscillator measuring speed and magnitude of price...
MACD
Moving Average Convergence Divergence—a trend-following mome...
Bollinger Bands
Volatility bands placed above and below a moving average, wi...
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Where You'll See This
This concept appears throughout stock detail pages and financial data.