resistance level

resistance level
/rɪ'zɪst(ə)ns ˌlev(ə)l/ noun
a price or index level which investors feel marks a boundary which they are reluctant to cross, since beyond that boundary the price would be too high or too low
COMMENT: Resistance levels on the Stock Exchange relate to ‘sentiment’; if a share is selling at $2.95, and does not rise, it may be that investors see the price of $3.00 as a point above which they feel the share is overvalued; if the price ‘breaks through’ the $3.00 barrier, then it may continue to rise rapidly, as the resistance level has been broken. The same applies in reverse: if the pound/dollar exchange rate is $1.65, and the pound becomes weaker, the resistance level of $1.60, when broken, may be the sign of a further slide in the pound’s value.

Dictionary of banking and finance. 2015.

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Look at other dictionaries:

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  • resistance area — noun see resistance level …   Useful english dictionary

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