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.

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).

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.
References in periodicals archive ?
Exchange stocks declined by 1175 tonnes and $500 now remains the major resistance level to be broken.
To determine horizontal support and resistance levels on your charts, find a level where there is a significant amount of overlapping price action.
The report pointed out that Madinet Nasr Housing & Development shares are moving sideways, reaching a resistance level of EGP 15.20.
Every now and again, a price will break out from its support or resistance level and reach new high or low points.
Thomsen said their outlook is likewise positive on gold, adding that if the current support level of $1,272 an ounce is not broken, the next resistance level on the upside is $1,300 an ounce.
Technical analysts predicted that the benchmark index EGX30 at the Egyptian Exchange (EGX) would move sideways, between 8,000 and 8,500 points, after it failed to maintain stability above the resistance level of 8,500 points during last week.
"If Damac Properties breaches resistance level of Dh3.63, we may see further upside of Dh3.87," said Al Ashri.
That puts the next big resistance level at 1600, a psychologically important round number.
Analysts and technical reports predict that the Egyptian Exchange (EGX) will break through a resistance level of 8,500 points during this current trading week.
Local stockbrokerage AB Capital Securities said that with the index again breaching the primary 8,000 resistance level, the new support level with secondary support was at 7,950.
Abu Dhabi index may hit a new high and breach resistance level of 4,620 by next week, said Al Ashri.
"Aldar Properties may be risky if it breaches support level of Dh2.50," Al Ashri said, adding "we are still waiting for new highs in ADCB [Abu Dhabi Commercial Bank] within few weeks to [a] resistance level of around Dh8.37." ADCB recorded a new high of Dh8on Wednesday, and closed at Dh7.620, down 7.62 per cent.