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Resistance level |
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Resistance levelA price level identified by technical analysts at which persistent selling of a share or commodity takes place.If the share price history of XYZ company is plotted on a chart, and the chart shows that the share never seems able to rise above £4.20 or fall below £3.60, then the resistance level is £4.20 and the support level is £3.60.The significance of this is that if the share price does break through those barriers, that may indicate a change of market sentiment towards the share, and may indicate the arrival of a new trading range. If the technical analyst is right in making this observation, he can buy or sell accordingly and make a profit.Resistance levelA 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.Resistance level Similar MatchesResistanceResistanceAn effective upper bound on prices achieved because of many willing sellers at that price level. |
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