resistance level

A resistance level is a price point in the stock or asset market where selling tends to increase, making it difficult for the price to rise above that point. Think of it as a ceiling; when the price approaches this level, many investors might sell, causing the price to pause or decline. It reflects a concentration of sellers who believe the asset is overvalued at that level. Resistance levels help traders identify potential reversal points, indicating where upward momentum may slow or reverse, and are useful for making informed buying or selling decisions.