METATrading Academy

Technical analysis

Resistanceupar ki rukawat, jahan sellers aa jaate hain

A price level where a stock has repeatedly stopped rising because sellers appear, acting like a ceiling until it is broken.

Resistance is a price zone where a rising stock has stalled before, because enough sellers show up there to absorb the buying. It might be a previous high, a round number, a moving average, or a level where many traders bought before a fall and now want to exit at breakeven. If SBI has turned down from around ₹820 three times in two months, ₹820 is resistance. Traders use it in two ways: some sell or take profit near it, expecting a rejection; others wait for a clean close above it with volume, treating that as a breakout. Once broken, old resistance often becomes new support, because buyers who missed the move step in on the retest. Resistance is a zone, not an exact line, and it gets weaker each time price tests it. Always define where the idea fails with a stop loss.

Lessons that use this term