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.
Share this glossary term: