Support Level

A support level is a price zone where buying interest has historically been strong enough to halt or reverse a downward price move. As prices fall toward support, buyers see value and enter the market while short sellers take profits, creating upward pressure. The more times a support level holds, the more significant it becomes. When support is broken decisively, it often transforms into a new resistance level. Traders use support levels to plan long entries, place stop-loss orders just below the zone, and target the next resistance level as a profit objective, forming the basis of price action analysis.