Support is a key technical analysis concept that represents a price level at which a stock or index tends to find buying interest. In simple terms, itís the point where the demand for a stock is strong enough to prevent the price from falling further. Traders and investors watch support levels closely as they indicate potential buying opportunities or zones of price stability.

When the price of a security declines toward a support level, buyers often enter the market, expecting the price to rebound. If this buying pressure is sufficient, the price will ìbounceî upward. However, if the selling pressure overpowers the buyers, the support level may break, signaling further downside momentum. A broken support can sometimes turn into a new resistance level.

Support can be identified through various tools such as trendlines, moving averages, and previous lows. For instance, if a stock repeatedly bounces back from ?500, that price may be considered a strong support level. Chart patterns like double bottoms or ascending channels also help traders locate potential support zones.

Understanding support levels is crucial for developing entry and exit strategies. Long-term investors use it to identify undervalued zones, while short-term traders may use it for setting stop-loss levels or timing trades. However, support is not an assuranceóitís a probabilistic concept that can change based on market sentiment, news, or macroeconomic developments.

In summary, support serves as a foundation for price stability and decision-making in technical analysis. Combining it with volume data, trend confirmation, and broader market cues enhances accuracy and reduces the risk of false signals.