By Mark Putrino
Publication Date: 2026-05-21 12:53:00
In the stock market, support is a price or narrow price range where there is a large amount of demand for the shares. There are more shares to be bought than to be sold. This is why selloffs end or pause at support levels.
Traders and investors who wish to sell can do so without pushing the price lower.
Sometimes support forms as a result of seller’s remorse. This can be seen on Cisco’s chart. See below.
Cisco: Can Sellers Draw Buyers Into The Market?
In October, there was resistance around $73.25. When this resistance was broken, and the price went higher, many of the people who sold regretted doing so. A number of them decided to buy their shares back if they could repurchase them for the same price they were sold for.
This buying created support at the level.
A similar dynamic occurred at $87. It was resistance in February, and then it converted to support in April.
As you can see on the chart, Cisco recently gapped up from around $102 to around $114. When a stock moves rapidly…