Resistance level - A price level above which it is supposedly difficult for a security or market to rise. Used in the context of general equities. Price ceiling at which technical analysts note persistent selling of a commodity or security. Antithesis of support level.
A price level identified by technical analysts at which persistent selling of a share or commodity takes place.If the share price history of XYZ company is plotted on a chart, and the chart shows that the share never seems able to rise above £4.20 or fall below £3.60, then the resistance level is £4.20 and the support level is £3.60.The significance of this is that if the share price does break through those barriers, that may indicate a change of market sentiment towards the share, and may indicate the arrival of a new trading range. If the technical analyst is right in making this observation, he can buy or sell accordingly and make a profit.
Resistance level : a price level above which it is supposedly difficult for a security or market to rise. used in the context of general equities. price ceiling at which technical analysts note persistent selling of a commodity or security. antithesis of support level.
a price level identified by technical analysts at which persistent selling of a share or commodity takes place.if the share price history of xyz company is plotted on a chart, and the chart shows that the share never seems able to rise above £4.20 or fall below £3.60, then the resistance level is £4.20 and the support level is £3.60.the significance of this is that if the share price does break through those barriers, that may indicate a change of market sentiment towards the share, and may indicate the arrival of a new trading range. if the technical analyst is right in making this observation, he can buy or sell accordingly and make a profit.
Resistance level