Resistance Levels: Understanding and Analyzing in CFA Level 1 Exams

The Importance of Resistance Levels in CFA Level 1 Exam

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A resistance level -

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Technical analysts believe that investors who have acquired a stock at a higher price will look for an opportunity to sell it near their break-even points. A resistance level is the target price range that these investors look for to sell their stock at minimum or no loss. Such a price range tends to develop after the stock has experienced a decline from a higher price level.