Resistance
A price level at which selling has previously been sufficient to halt an advance.
Formula
Test: price has reversed downward from approximately this level on at least two prior occasions
Unit
₹
In depth
Resistance is the mirror of support and carries the same caveat: it describes where sellers appeared before, not a ceiling. One documented behavioural mechanism behind it is that investors who bought at a prior high and then suffered a loss tend to sell when they get back to break-even, which concentrates supply at that level. Once broken, a resistance level is conventionally said to become support, which is a claim about order clustering rather than a law. Like every level in technical analysis, resistance is a description; this dictionary does not forecast whether any price will be reached or exceeded.
Worked example
A stock stalled at ₹534, ₹531 and ₹536 across a year, so ₹531 to ₹536 is described as resistance. Investors who bought near ₹534 and held through a fall to ₹440 are a documented source of the selling that appears on a return to that zone.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Resistance” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.