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Overhead Resistance Level

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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).

overhead resistance level


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Furthermore, a positive end to this development could be just the catalyst that security needs to break some key overhead resistance levels.
These put adds may suggest that an option player is betting that the security will be unable to breakthrough this overhead resistance level and will trade lower after being rejected by the resistance.
Today's rally was somewhat encouraging but we have some overhead resistance levels to test now and I'm not a believer that we're back on track yet.
 
 
 
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