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What is 'Resistance (Resistance Level)'. Resistance, or a resistance level, is the price point at which the rise in the price of a stock or a stock index is halted by the emergence of a growing number of sellers who wish to sell the stock at that price.What causes stock price resistance?
A resistance level is created at a point where "selling pressure" exceeds buying pressure and the rally in stock price is halted. The stock will rise to a certain point. People who believe the stock has peaked will begin to sell, which in turn causes the stock to reverse and fall in price.