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An effective upper bound on prices achieved because of many willing sellers at that price 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).
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


An increased supply of a security. Compare support.
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.


Resistance, or resistance level, is the top of a stock's current trading range, and the point at which the price is higher than investors are willing to pay. As stockholders sell at resistance level, the stock price goes down because supply exceeds demand.

For example, if, on a repeated basis, as stock A's price reaches $60, stockholders begin to sell, then $60 is considered its resistance level. But a trading range isn't fixed and investor attitudes change, so the resistance level tends to move higher or lower over time.

If stock A rises to $63 without a surge of selling, the current resistance line has been breached. This may be the result of a rising market or a bullish assessment of the stock's value. On the other hand, if selling increases at $57, that may become the new resistance level.

Conversely, the level at which demand exceeds supply and investors typically buy a certain stock is called support. It's the point that's considered the bottom of a stock's current trading range.

Technical analysts use the concepts of resistance and support in anticipating future stock price movements.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
The soil mechanical resistance (SR) was measured using a cone penetrometer (cone angle 30[degrees], rod diameter of 20.27 x [10.sup.-3] m and 323 x [10.sup.-6] [m.sup.2] base area cone (ASAE Standards 2002)) with 0.01 m min 1 insertion speed at three locations and four depth increments from 0.01 to 0.04 m with 0.01 m interval for each pot and water content (Lowery and Morrison 2002).
Regardless of soil moisture, the sampling position of the soil mechanical resistance to penetration (row, interrow or both positions) is indifferent when the analyzed layer is greater than 0.20 m in the cotton crop.
According to the graphic of Ashby (1988) the tannin foams in general respect the relation between density and modulus of elasticity of classic foams and in particular it covers a range of very light foams with limited mechanical resistance. The combination of the tannin-foam as core material with different decking improves strongly the mechanical and surface properties carrying to a highly interesting engineered material.
The mechanical resistance of these constructions is now clearly proven."
TP0702UCAP provides an upper and lateral side protection with copolyamide polyhexamethylene polymer walls, gamma radiated with high thermal stability (supports up to 290[degrees]C) and mechanical resistance (exceeds 150 Mpa of mechanical strength).
Benefits for demanding applications include a new coating offering superior corrosion protection at highest mechanical resistance and a version for modulating duty offers an extended speed range.
In the textile industry coating or starching of cotton yarn is carried out to increase the mechanical resistance of the yarns, that is, the tensile strength, and resistance to vibration, friction, impact, and elongation, which are some of the forces to which the yarn is subjected during the weaving process.
The defects in the material's structure may have a negative impact on denture's mechanical resistance.
The agency is, however, requesting data regarding the conversion of the extended release formulation used in the clinical efficacy and safety trials to a different extended release formulation that is designed to increase mechanical resistance to breaking or crushing.
Epoxy coatings provide superb adhesion on most substrates (metal, galvanised steel, concrete masonry, wood and so) on as well as superb chemical and mechanical resistance and are proof against bacterial attack and so are an excellent option for interior and exterior finishes and floor coatings for a full range of industrial and process facilities from oil and gas through marine applications and high-technology chemical and pharmaceutical plants to hospitals, laboratories and schools.

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