Zone of Support

Also known as a support level, or simply support, is the level at which the price of an asset experiences stability as it drops, due to the appearance of an increasing number of buyers who are eager to buy at that price. Support levels may be long-lasting or short-lived depending on whether new information surfaces and alters the market's perception of the asset as a whole. Drawing an horizontal line (and at times diagonal lines, known as trend lines) to connect the lows for the time period being considered, allows technical analysts to chart the support levels, and make a more accurate price projection. The counterpart of support is resistance.