Support level definition

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.

Knowing where an asset’s support and resistance levels are can help traders choose the best time to enter a market, as well as where to put stops and limits.

Visit our education section

Learn more about technical analysis in our education section.

A - B - C - D - E - F - G - H - I - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms

Contact us

Our office is open 5 days a week Monday to Friday from 9am to 6pm. Support line is available 24hrs a day from 8am GMT Saturday to 10pm GMT Friday

+65 6390 5118

You can also email us helpdesk@ig.com.sg

Visit our storefront office at 9 Battery Road