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Related to Resistance: voltage, electrical resistance, resistor


An effective upper bound on prices achieved because of many willing sellers at that price level.

Resistance Level

In technical analysis, a price that a security does not, or only rarely, rise above. Technical analysts identify a resistance level by looking at past performance. When the security approaches the resistance level, it is seen as an indication to sell the security, which will increase the supply, causing the security's price to fall back below the resistance level. If there are too many buyers, however, the security rises above the resistance level. When this occurs, the price of the security will likely continue to rise until it finds another resistance level. It is also called the overhead resistance level. See also: Price ceiling, Support (Support level).


An increased supply of a security. Compare support.


Resistance, or resistance level, is the top of a stock's current trading range, and the point at which the price is higher than investors are willing to pay. As stockholders sell at resistance level, the stock price goes down because supply exceeds demand.

For example, if, on a repeated basis, as stock A's price reaches $60, stockholders begin to sell, then $60 is considered its resistance level. But a trading range isn't fixed and investor attitudes change, so the resistance level tends to move higher or lower over time.

If stock A rises to $63 without a surge of selling, the current resistance line has been breached. This may be the result of a rising market or a bullish assessment of the stock's value. On the other hand, if selling increases at $57, that may become the new resistance level.

Conversely, the level at which demand exceeds supply and investors typically buy a certain stock is called support. It's the point that's considered the bottom of a stock's current trading range.

Technical analysts use the concepts of resistance and support in anticipating future stock price movements.

References in classic literature ?
The natural measure of this power is the resistance of circumstances.
Somewhat is possible of resistance, and of persistence, and of creation, to this power, which will foil all emulation.
The hard trials to my courage, endurance, and physical strength, through which I had passed within the last twelve hours, had completely exhausted all my powers of resistance.
But what, in addition to the tell-tale bullet, appeared to fix the ruthless deed with peculiar certainty on the trapper, was the accumulated evidence furnished by the trail; which proved, notwithstanding his deadly hurt, that the wounded man had still been able to make a long and desperate resistance to the subsequent efforts of his murderer.
Darkness had set in; it was a low neighborhood; no help was near; resistance was useless.
But it was of no use; she soon threw her work down, and all her intentions were lost in the vague state of emotion produced by the inspiring duet,--emotion that seemed to make her at once strong and weak; strong for all enjoyment, weak for all resistance.
Lucy, always proud of what Stephen did, went toward the piano with laughing, admiring looks at him; and Maggie, in spite of her resistance to the spirit of the song and to the singer, was taken hold of and shaken by the invisible influence,--was borne along by a wave too strong for her.
Over time there has been an increase in the number of resistance tests performed each year in the UK and in 2006 there were approximately 40,000 sequences with more than half of them linked to very detailed treatment histories.
Resistance to several drugs, amoxicillin (18%), gentamicin (16%), nalidixic acid (21%), sulfonamides (24%), and tetracycline (24%), has been observed from 2000 through 2005.
In many populations, increase in visceral fat is linked to the development of insulin resistance and the metabolic syndrome, in turn leading to greater cardiovascular risk.
The antibiotics end up in human and animal waste and can reach the environment, where resistance can also develop in soil- and water-dwelling bacteria.
As he noted after the movie was released, ``Don't forget that there are more people who didn't work for the Resistance than people who did.