Technical Analysis

Resistance

A chart area where selling has previously limited upward price movement.

Plain-English context

Put the definition to work.

ILLUSTRATIVE EXAMPLE

Repeated trading difficulty near $50 marks an observed area, not a guaranteed ceiling. A later price can cross it or fail near it.

IMPORTANT DISTINCTION

A prior area of selling is an observation, not a permanent ceiling or proof of current supply at that price.

Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. FINRA — investing insights

MY MARKET BOOK / FREE CHAPTER

A clearer picture starts here.