Resistance Level Definition

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Definition Of Resistance Level:

resistance level A price at which a security or the market itself will encounter considerable selling pressure.
A resistance level is formed when investors purchase large amounts of a security just before a decline and then resolve to sell the security should it again reach the level at which it was purchased. Technical analysts believe that an additional supply of a security will tend to keep its price from rising above the resistance level. Also called overhead resistance level. Compare support level. See also overhanging supply.resistance level.

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