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 ?
Abu Dhabi index may hit a new high and breach resistance level of 4,620 by next week, said Al Ashri.
Nominal resistance force generated by hydraulic cylinders of different rowing machines was from 50-110 N at the lowest speed of the piston (60 mm/min) to 150-210 N at the highest speed of the piston (900 mm/min) the diameter of the piston being the same for all of them and the same resistance level (VIII) set during the tests (Fig.
Younis expected the uptrend movement to continue till Monday or Tuesday at the latest before the market slid into a downturn, noting that the up and down movements constitute a sideways movement from the support level of 5500 points to the resistance level of 5800-5900 points.
For example, if a technical analyst learned in conversation that Japanese exporters are selling at 100, he or she would report a resistance level at [yen] 100.
65 and is expected to hit a resistance level of 8,917 this week.
The company's shares broke through $38 resistance level last week, which is a bullish signal.
He expects the worst case scenario, for the main index not to break the 4900 points support level in the short to medium term, with the best case being not to surpass the 5500-5650 points resistance level, adding that this sideways movement is normally accompanied by low transaction volumes.
Every time a resistance level is broken, it tends to change its role and becomes a new level of support.
This built-in feature supplies the targeted musculature with the appropriate resistance level throughout the strength curve of the exercise.
DIB is still positive, and may hit a resistance level of Dh7.
The auto parts maker's shares fell sharply earlier this month after failing to break through $23 resistance level.
This lift was followed by selling pressure, explained by the inability of the stocks to go beyond their resistance level, hence the index closed below the 5750 points limit," said Khaled.