resistance level

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Resistance level

A price level above which it is supposedly difficult for a security or market to rise. Price ceiling at which technical analysts note persistent selling of a commodity or security. Antithesis of support level.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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).
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resistance level

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resistance level
A price at which a security or the market itself will encounter considerable selling pressure. A resistance level is formed when investors purchase large amounts of a security just before a decline and then resolve to sell the security should it again reach the level at which it was purchased. Technical analysts believe that an additional supply of a security will tend to keep its price from rising above the resistance level. Also called overhead resistance level. Compare support level. See also overhanging supply.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Subsequently, resistance was seen at 0.381 which led to a pullback and test of the prior resistance price area, as the low of the pullback so far was last week's low of 0.35.
The target derived from the triangle pattern is approximately 0.96, which is in the area of prior support and resistance price levels that would create a target by themselves, in particular the bottom on July 1, 2014, which was at 0.95.
Fibonacci ratio analysis provides a mathematical way to determine possible resistance price areas.
" 3901.83 is the next resistance price level that the general index needs to surpass for a sign that it's likely to continue higher in the near-term."