Support Level (Noun)
Meaning
(stock market) the price at which a certain security becomes attractive to investors.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The stock's support level was $25, which was the price at which investors believed it was a good value and would start buying.
- Analysts identified the support level for the struggling company's stock at $10, below which it was likely to collapse.
- The support level of the bond was 80% of its face value, making it an attractive investment for those seeking low-risk income.
- When the stock price falls below its support level, it often triggers a wave of panic selling that can drive the price even lower.
- Some investors believe that the support level for a commodity like gold is the cost of production, below which miners will stop producing.