support level

Support level in finance refers to a specific price point where an asset tends to find steady buying interest, preventing it from falling further. Think of it as a "floor" that a stock or asset struggles to break below, because many investors see it as undervalued or a good entry point. When the price approaches this level, increased demand often pushes it back up. Identifying support levels helps traders make decisions about when to buy, as these points can indicate potential price stability or rebounds in value.