What is Technical Support Level?

In technical analysis, a support level is a specific price level which a stock or security fails to break below. Support levels are often created when many buyers purchase an asset at or near the same price it has fallen to in the past. Traders often visualize support levels using different technical indicators (such as moving averages) or by drawing trend lines on a chart to connect the lowest lows for a specific time period. The opposite of a support level is a resistance level, and both should be considered when practicing proper risk management while trading and investing.