Support Test

See: Support.

You're divorced. Your kid from your previous marriage needs serious orthodonture work. Can you afford it? One form of support test.

Another kind of relates to stock trading. Support describes a price level where a stock typically gets some buying interest. Shares have fallen, but are approaching support levels, a point where the price has recently lured buyers into purchasing the stock, thus giving shares a boost.

As the price reaches the support level, that process becomes a support test. Like pressing gently down on a frozen lake to see if the ice will support your weight (always a good idea).

Sometimes, shares rebound off of support. That’s typically the predicted response. Sometimes, though, the support doesn’t hold, and shares keep falling. Like taking that big, heavy first step onto the lake and hearing the ice crack. Nothing to do but hold your breath as you drop into the cold water beneath, and maybe question some of your life choices.