Congestion (redirected from udder congestion)

Congestion

1. A market situation whereby the demand of contract holders wishing to exit their existing positions exceeds the supply of willing participants wishing to enter into the offsetting position.

2. A period of time when a stock trades either below resistance or above support, or both.

Notes:

1. During times of congestion, contract holders, since their positions are unattractive to new investors and in order to offset their positions, will be required either to pay a high premium or sell at a low discount.

See also: Break, Bulge, Buoyant, Buyer's Market, Corner, Futures Contract, Resistance, Support, Technical Analysis