support level
1
5.8
- noun
- Specialized
:
nivel de soporte
- NZD is probably going to trade weaker than AUD; therefore, I'd recommend a LONG on AUDNZD at support levels.
Examples
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Given that we are near trend channel support, should we throw all our positions out the door when we are near a support level?
Blog text (5) -
Traders often watch to see if a stock rebounds after hitting a support level, indicating that demand may increase.
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However, if prices can break out and close above the broadening wedge pattern, it would also put prices above the previously broken support level.
Blog text (11) -
The three drug stocks I mentioned, BMY, LLY, and MRK, have pulled back, but only to recent support levels, if that.
Blog text (15) -
If that investor were assigned shares of the stock, the cost basis would be $393.00 (ex-commissions), a number that is below several key support levels from 2007, 2008, 2010, and 2011.
Blog text (10) -
When the price of a stock approaches a support level, many investors believe it could be a good time to buy.
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The support level for this stock is set at $50, where many buyers are expected to enter the market.
Surface Forms
Morphology
The phrase transparently combines 'support' (help/holding) and 'level' (a point/stage), so a learner could guess it refers to a point where something is held up. However, the specific technical financial sense — the price point where demand prevents further decline — is a metaphorical/technical extension of 'support' and may not be fully predictable to a B1 learner without domain exposure. Therefore it is partially predictable but not fully transparent.
Etymology
The term support level comes from the image of a shelf or beam that stops something from falling, where support is what holds it and level is the height of the shelf. In finance, when a price reaches that 'level', buyers step in to 'support' it, so the price often stops falling.