Resistance

When prices are unable to keep rising, indicating a ‘ceiling’ that cancels out trader expectations.

Resistance is a term used in corporate finance to describe situations where the price of an asset is unable to rise beyond a particular point. This point is described as a ceiling for the asset price and it generally comes about on account of strong selling pressure. As a result, price resistance can only be surmounted when there is stronger buying pressure.

Resistance is the reverse price condition of support. In the latter, prices are unable to fall beyond a certain point. Thus, both of these price indicators or conditions give traders an idea of what to expect from the market.