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Support level

A stock's support level is the price from which previous rallies have sprung.

Expanded Definition

There are many types of technical analysis, but the most basic tools are known as "support" and "resistance" levels. A technically inclined investor who misses one rally will be inclined to buy the stock if it falls back to the support level. Enough such buying, of course, makes it difficult for the stock to fall beneath that level.

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