resistance
resistance definition - finance
In
technical analysis, a price point or points that a futures contract or other
financial instrument will have difficulty rising above. Resistance is a price
level where selling pressure overcomes buying pressure and a price advance is
turned back. The opposite is support, which
is a technical analysis term. It indicates a price point that prices will have
difficulty moving below. Technical analysts look at resistance in order to
determine the marketÂ’s next likely move. For instance, if gold prices have been
attempting to move higher but each dayÂ’s gain stops at $335 per ounce of gold
or $336, then those two price points are where resistance occurs.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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