Price Resistance
Resistance is simply the opposite of support, a level where buyers leave the market and selling begins, increasing supply. When price moves up to a certain level, sellers begin selling, price reverses and begins to move down. Supply may be stronger than demand and keep selling prices lower. Buyers refuse to pay higher prices for a stock, the price must fall back to attract more demand.
Like support, resisitance is not a guarantee that prices will not continue higher. Price can and move where it pleases. A break of a resistance line is considered bullish for a stock. If the price stays above that line for a prolonged period, the line then becomes support.
