What Is Resistance? Meaning & Example
Definition
Resistance is a price area where selling pressure has tended to stop advances. A break above resistance can signal a new move higher.
Related terms
Support is a price area where buying interest has tended to stop declines. Traders watch support levels for potential bounces or breakdowns.
BreakoutA breakout happens when price moves decisively beyond a support or resistance level or out of a range. Breakouts on strong volume are often seen as more convincing.
TrendA trend is the general direction in which a price is moving over time. Uptrends make higher highs and higher lows, while downtrends make lower highs and lower lows.
What is Resistance?
Resistance is a price area where selling pressure has tended to stop advances. A break above resistance can signal a new move higher.
Can you give an example of Resistance?
A stock repeatedly stalling near $75 suggests resistance at that level.