Resistance Levels

In the stock market, resistance levels are a concept used to describe price points where a stock’s price has difficulty moving beyond. A resistance level is the highest price at which a stock has traded in the past, and it is generally considered to be a point where selling pressure has been strong enough to push the stock’s price down. The resistance level is also seen as a psychological level as well, as many investors may be unwilling to buy a stock if it is trading beyond a certain price.

When a stock’s price breaks through a resistance level, it is seen as a bullish sign, as it suggests that buying pressure is strong and that the stock could move higher. On the other hand, if a stock’s price fails to break through a resistance level, it is seen as a bearish sign, as it suggests that selling pressure is strong and that the stock could move lower. In conclusion, a stock resistance level is a price point where a stock’s price has difficulty moving beyond. It is typically seen as a psychological level, as many investors may be unwilling to buy a stock if it is trading beyond a certain price.