Support Level
A support level is a price zone where a falling stock has tended to stop declining because buying interest has been strong enough to absorb selling.
On a chart, support appears as a level where prices have bounced upward several times. Traders believe buyers see value there, or that people who missed buying earlier are waiting to enter, which creates demand.
Support can come from previous lows, round numbers such as $100, moving averages like the 200-day line, or rising trend lines. The more often a level holds, and the higher the volume at that level, the more significant traders consider it.
When price falls decisively through support, the level often flips into resistance, because buyers who entered there may sell to break even if the price returns. Traders often place stop-loss orders just below support to limit losses if it breaks.
Example: a stock dropped to about $45 and rebounded three times in six months. Chart watchers would call $45 a support level; a close well below it could be read as a sign that sellers have gained the upper hand. Support is a zone, not a precise price, and it can fail without warning.