What is Resistance?
Resistance can be defined as a level from which a stock tends to go down. Its a level which indicates that the stock is likely to witness some profit booking, and some downside is possible in the next coming days.
Its is an awareness of patterns associated with resistance zones (areas usually associated with previous trading ranges, in which prices find resistance against further upside) enables investors to more accurately define the direction of significant market trends. S
Identifying the Resistance level of stock is merely done by looking at the last 3-4 high’s of the stock from which it declined, but it takes some practice and is somewhat subjective because there are points that can be considered weak support or resistance and strong support or resistance. Resistance are areas where prices tend to consolidate and reverse. Resistance provides resistance to prices that are shooting pu.
Determining the strength of the Resistance levels also plays an important role, this is done by counting how many times did the stock price declined prices from shooting up further, in other words counting the number of times the stock declined from its support levels, The more times it declined, the stronger and more significant the Resistance point.
But, once a stock successfully crosses its resistance, some more upside can be seen in the stock.
Search Our Archives
- Stocks Trading above their 50 day moving average - DMA In Stock Research
- Download free Ebooks based on Technical Analysis In Personal Training
- TOP 100 Stocks with the Highest P/E as on July 14th, 2013 In Stock Research
- TOP 100 Stocks with the Lowest P/E as on July 14th, 2013 In Stock Research
- Charting Pathsala - Your guide to Techincals In Technical Analysis
- Chacko Sir, Can I invest in BHARATIDIL for...In Intraday calls for 29-03-17
- a2b dear cb tgt for idea andonmobile for t...In Intraday calls for 28-02-17
- Vasavi Hi cb Tfcil short term target ?...In Intraday calls for 29-03-17
- Ram Hi cb sir, What's the growth of solar...In Intraday calls for 29-03-17
- Krishna Hi CB, I bought fedder llyod @70.. can...In Intraday calls for 29-03-17
- devjani Sir hdfc future intra level please.....In Intraday calls for 29-03-17
- Jayant I have spicejet@74 Should I hold or ...In Intraday calls for 29-03-17
- Dish NMDC intraday target pls...In Intraday calls for 29-03-17
- devjani Sir, union bank future intraday level ...In Intraday calls for 29-03-17
- Ron TRITURBINE intraday target ??...In Intraday calls for 29-03-17
- Ron Axis bank intraday upside and downsid...In Intraday calls for 29-03-17
- Rajesh Suggest best stock picks for intraday ...In Intraday calls for 29-03-17
- ninad Hi CB, your view on vedanta for today ...In Intraday calls for 29-03-17