Technical analysis

Support

Defined in 1 lesson · Updated October 17, 2026

Definition

Support is a price area where buying has stopped declines before, such as a prior swing low, yesterday's low or a round number. Treat it as a zone a few cents wide rather than an exact line, and expect it to break at some point.

Example

Say a stock has bounced from $24.90, $25.00 and $24.95 in recent weeks, right around the round number of $25. Rather than a line at exactly $25.00, a trader might mark a support zone from $24.90 to $25.00 and place a stop a little below it, at $24.75. If the stock later closes at $24.60, that support has broken.

Hypothetical numbers, for illustration only.

A chart labeled with this section's terms: a range between green support and red resistance at $50; a false breakout that trades up to $50.20 and closes at $49.85; a breakout that closes above $50; a retest where old resistance acts as support and the zone turns green; then a pullback and an uptrend of higher highs and higher lows.

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