Support Level

🔅A support level is the price at which an asset may find difficulty falling below as traders look to buy around that level.

🔅Usually, the markets prove unwilling to let an asset drop below its support level, with buyers stepping in to raise the asset’s price higher again.

🔅That makes them the opposite of resistance levels: the point at which the markets prove unwilling to let an asset’s price rise any higher.

🔅If an asset does move below its support level, then that support level is either wiped out – and a new support level must be identified – or reconfirmed, if lots of traders buy the asset.