Resistance Level of a Stock: Understanding the Technician's Expectations

Resistance Level of a Stock

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Question

The resistance level of a stock is the price at which the technician expects:

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A. B. C. D.

B

The resistance level can be thought of as a temporary ceiling on the stock price in the sense that if the price rises above this level, additional supply from investors trying to cash in will depress the price below the resistance level.