What Is the Resistance Level of a Stock? Definition, Example & Explanation

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The Street

By TheStreet Staff What Is Resistance in Simple Terms?A resistance level—often referred to simply as “resistance”—is a price above which a stock doesn’t tend to rise over a given period of time. In other words, it is the presumed “ceiling” price of a particular stock over a certain period. Resistance is the opposite of support. A stock’s support level is the price it tends not to drop below over a given period of time. Stocks fluctuate in value all the time—some more so than others. The more a stock’s price changes (and the greater the degree to which it changes), the more volatile it is. For …

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