Resistance is a mirror image to support for a share price. In this case, a share price is rising and reaches a level at which investors won’t sustain it any further and the price falls back. It is as though the share price has bounced off a glass ceiling. Having fallen back slightly, it may climb again and even bounce back at the same price. We say that investors are providing resistance at that price. Resistance levels indicate the level at which sellers generally outnumber buyers.
Leave a Comment