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Finance Dictionary and Glossary of Investment Terms
Resistance level
Definition 1.
A price level above which it is supposedly difficult for a security or market to rise. Price ceiling at which technical analysts note persistent selling of a commodity or security. Antithesis of support level.
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Definition 2.
A ceiling of sorts believed by technical analysts to hang over a stock -- or the entire stock market -- at some given level, perhaps as the result of purchases made before a decline. The thinking is that investors, waiting for a rebound, will get out when things have recovered enough to wipe out their losses. Thus, the stock or market is prevented from moving higher. The trading range between the support level and resistance level is known as a ""channel.""
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