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 ?
He advised investors to watch shares that reach lower bottom levels, in comparison to their previous bottom levels, adding that they should have the ability to break up their last resistance levels during upside waves.
Traders who feel confident that the price has indeed broken through its support or resistance level for good, and that it will keep moving in the same direction for a while, can use a more aggressive strategy and begin trading immediately after the breakthrough point, as shown by the entry point in the image below.
5-fold), populations collected from Lodhran and Bhakar had no resistance levels and a population collected from Muzaffar Garh had a low resistance level (18-fold) when compared with the susceptible population.
Aldar Properties has positive signals for next week and faces a resistance level of Dh2.
3 ensures possibility to adjust the resistance force proportionally to the resistance level set by control ring on hydraulic cylinder (Fig.
A trading range has just one support level and one resistance level.
The shares of Global Telecom are expected to overcome the resistance level of EGP 5, then near EGP 5.
The initial and secondary resistance levels could be found at 7,200 and 7,400, respectively, the brokerage said.
65 and is expected to hit a resistance level of 8,917 this week.
He considers the first resistance level of importance is around NOK200.
Every time a resistance level is broken, it tends to change its role and becomes a new level of support.
Analysts guess that EGX30 will move sideways narrowly with a support level of 8,248 points and a resistance level of 8,343 points, in light of the ambiguity of the Central Bank of Egypt's (CBE) decision on the Egyptian pound exchange rate crisis.