A price level at which rising prices have stopped rising and either moved sideways or reversed direction; usually seen as a price chart pattern. Resistance levels are normally caused by one or more large sellers giving their brokers massive sell orders at a certain price. Then the share (or other instrument) will rise to that level and get beaten back by a flood of sell orders. It may rise to that resistance several times before the sell orders are all completed and the share can break above the resistance.
For a good example, refer to the PDSnet article, Resistance, by clicking here.Disclaimer - All information and data contained within the PDSnet Glossary terms is for informational and educational purposes only. PDSnet makes no representations as to the accuracy, completeness, suitability, or validity, of any information, and shall not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use. Information in the PDSnet glossary terms is based on the author’s opinion and experience and should not be considered professional financial investment advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Thoughts and opinions will also change from time to time as more information is accumulated. PDSnet reserves the right to delete any glossary term for any reason.« Back to Glossary Index