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Investing & the Stock Market vocabulary · Technical & Fundamental Analysis

Resistance level

Meaning in investing & the stock market, with examples

/rɪˈzɪstəns ˌlevl/nounCommon term

In investing & the stock market, resistance level means: A price level where a rising stock has often stopped and turned back down in the past, because sellers tend to appear at that price.

In Turkish: direnç seviyesi, direnç

How it is used

The opposite of support. A price meets, tests or fails at resistance; if it breaks through or clears resistance on strong volume, traders call it a breakout. Previous highs and round numbers often act as resistance.

Example sentences

  1. Gold failed again at the resistance level of 2,500 dollars an ounce.

  2. A close above this resistance level could open the way to new highs.

Common collocations

  • strong resistance level
  • break through resistance
  • test resistance
  • fail at resistance
  • support levelA price level where a falling stock has often stopped and turned back up in the past, because buyers tend to step in at that price.
  • technical analysisA way of studying past prices and trading volume on charts to identify trends and patterns that traders use to time their buying and selling.
  • all-time highThe highest price or level that a stock, index or other asset has ever reached since trading in it began.
  • moving averageThe average price of a security over a fixed number of recent days, recalculated every day, used to smooth out short-term swings and show the trend.

More terms: Technical & Fundamental Analysis

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This page explains English vocabulary for learners. It is not financial advice.