Resistance

Resistance is a price level where a stock has repeatedly struggled to climb higher, acting like a ceiling. You'll hear traders talk about it when analyzing price charts—it matters because if a stock bounces off resistance multiple times, many investors see it as a signal that the stock might pull back or consolidate. Think of it this way: if TechCorp stock keeps hitting $50 and then dropping, that $50 level is resistance. When a stock finally breaks through resistance with strong volume (meaning lots of shares traded), it can signal momentum and potentially lead to further gains. Resistance pairs with support, which is the opposite—a price floor where stocks tend to bounce upward.