Overhead Resistance Level

overhead resistance level

See resistance level.

---

Overhead Resistance Level

In technical analysis, a price that a security does not, or only rarely, rise above. Technical analysts identify an overhead resistance level by looking at past performance. When the security approaches the overhead 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 overhead resistance level. If there are too many buyers, however, the security rises above the overhead resistance level. When this occurs, the price of the security will likely continue to rise until it finds another overhead resistance level. It is more commonly called simply the resistance level. See also: Price ceiling, Support (Support level).