Support Meaning & Definition

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Definition of Support

Support is the price to which a security will fall and attract new buyers. As the new buyers enter the market it keeps the price from falling any lower

Applying "Support" to Securities Exams:

Many technical traders will enter their orders based on a security’s technical patterns. Investors who want to trade off of a support area will enter orders to buy the security in the support area with the expectation that others will do so as well and will cause the security’s price to appreciate. Should the price of the security break support other investors will enter orders to sell the security short anticipating that the price will decline further.