Resistance

Resistance is a key technical analysis concept representing a price level where an uptrend is expected to pause or reverse due to increased selling pressure. Resistance can form at previous highs, psychological round numbers, moving averages, or Fibonacci levels. When price approaches resistance, sellers often emerge, creating a ceiling. However, if broken with volume, resistance often becomes support. The strength of resistance depends on how many times it's been tested, volume at that level, and time frame significance. Traders use resistance for profit targets, short entries, or breakout trades.