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Investment
Resistance Level
A price level where a stock tends to stop rising and may fall back down because many sellers are waiting there.
Resistance levels are drawn using previous highs. When price breaks above resistance it often rises faster (breakout). Volume at resistance is important — low volume breakouts are less reliable.
It's like the ceiling of a room — the price keeps climbing until it hits the ceiling and sellers push it back down.
Real world: If a stock repeatedly fails to go above £80 and falls back, traders call £80 a resistance level. Many place sell orders or take profits near it.
💡 Resistance is where sellers usually win — break above it and the uptrend often accelerates.