A price or set of projected prices that represent levels from which the market declines or could potentially decline.
The resistance level can be easily identified if price highs share a common level. It would be a specific price, or a narrow range of prices. Resistance can also be dynamic and either tilted upwards or downwards, and do not have to be straight lines in examples such as moving averages or retracement levels as possible areas of resistance. Other psychological levels such as a whole number, last year’s peak, or the all-time high, can all be considered as possible resistance.