In finance, psychological level, is a price level in technical analysis that significantly affects the price of an underlying security, commodity or a derivative. Typically, the number is something that is "easy to remember," such as a rounded-off number. When a specific security, commodity, or derivative reaches such a price, financial market participants (traders, market makers, brokers, investors, etc.) tend to act on their positions (buy, sell or hold).
Examples:
1. Dow Jones Industrial Average Index - $14,000.00 - the all-time high psychological thousandth level as of 11/9/2007. Also known as "Dow 14,000"
2. Crude Oil (light, sweet) - $100.00/barrel
Famous quotes containing the word level:
“For him nor deep nor hill there is,
But all’s one level plain he hunts for flowers.”
—Unknown. The Thousand and One Nights.
AWP. Anthology of World Poetry, An. Mark Van Doren, ed. (Rev. and enl. Ed., 1936)