There's an interesting thing about support levels which is worth noting. When the larger market breaches a support level, all other support levels are up for grabs. You can see this with CFC as an example. Shortly after the DJIA broke its support level at 13,000 CFC went and broke its support level at $8.60. The result? CFC is down in the $7's and approaching its support level of $6.00.
If you're into technical indicators this is a pretty nice one because its rare to see the DJIA break multiple support levels without a rally. When the DJIA does rally, you're likely at least to see stocks like CFC hit their prior support levels as resistance points and you can trim the profits on that action.
If you're a long term buy and holder you want to know the support levels because those will represent levels you want to buy more stock at. If CFC drops past $6.80 for instance I'll probably double up assuming its only price action and the fundamentals haven't changed.
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