Posted in Finance, Accounting and Economics Terms, Total Reads: 205
Definition: Zone of Support
Zone of support is the price range at which at which a particular stock sees an upward trend in stock performance. Price range of Zone of support may vary from stock to stock and depends upon the volume of trading done for a particular stock. A highly traded stock will have wider price range of zone of support. Zone of support is the price range in between which, the stock is stable enough to hold the price of stock even in declining market conditions. In zone of support, the stock is said to be performing well and buyer is intended to buy and seller want to hold the stock, to achieve the maximum profit from the stock
Zone of resistance is the opposite of zone of support and the stock is expected to show resistance in increase in its share price even in favorable market conditions. During zone of resistance seller tries to sell the stock and buyer avoid buying that stock.