Support

Support is a price level where a stock has repeatedly stopped falling and bounced back up. Think of it as a floor—buyers tend to step in around this price, preventing the stock from dropping further. You'll hear traders talk about support when analyzing price charts, because it helps predict where a stock might find a bottom during a selloff. If support breaks (meaning the price drops below it), that's often seen as a bearish signal. For example, if TechCorp stock has bounced off $50 three times over the past month, traders might call $50 a support level and watch closely if it approaches that price again. Support isn't guaranteed—it's just a pattern investors have noticed and act on.