Resistance is a technical analysis concept where a stock price repeatedly fails to break above a certain level due to selling pressure. When resistance is broken, it often becomes a new support level. Traders use resistance levels to identify potential exit points or to confirm breakout trades.
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Quick Reference
Category
technical
Difficulty
Beginner
Reading Time
1 min
Related Terms
Moving Average
A technical indicator that smooths price data over a specifi...
Support
A price level where buying pressure prevents further price d...
Relative Strength Index
A momentum oscillator measuring speed and magnitude of price...
MACD
Moving Average Convergence Divergence—a trend-following mome...
Bollinger Bands
Volatility bands placed above and below a moving average, wi...
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Where You'll See This
This concept appears throughout stock detail pages and financial data.