What Is the Support Level of a Stock? Definition, Example & Explanation

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The Street

By TheStreet Staff What Is Support in Simple Terms?A support level—often referred to simply as “support”—is a price below which a stock doesn’t tend to fall over a given period of time. In other words, it is the presumed “floor” price of a particular stock for a period of time. Support is the opposite of resistance. A stock’s resistance level is the price it tends not to exceed over a given period of time. Stocks fluctuate in value constantly—some more so than others. For any particular stock, price fluctuation occurs between support and resistance levels like a ball bouncing between two invis…

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