Support – SharesInv.com

For Your Information | 22 October 2008

Support

Support is a price where traders and investors have shown a willingness to buy. Sometimes, lines are drawn from one support level to another to identify a line of support. This is sometimes called a trend line. Moving average lines are also used to identify lines for support. As long as the stock price trades above the trend line, the current trend remains intact. If price falls below the support line, then it is an indication that the trend may be reversing.

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