resistance level: meaning, definition, pronunciation and examples
C1/C2Technical / Financial / Formal
Quick answer
What does “resistance level” mean?
A specific price point in financial trading at which the upward movement of an asset is expected to pause or reverse due to increased selling pressure.
Audio
Pronunciation
Definition
Meaning and Definition
A specific price point in financial trading at which the upward movement of an asset is expected to pause or reverse due to increased selling pressure.
Any threshold or barrier at which a force, process, or trend encounters significant opposition, slowing, halting, or reversing it. This can be applied in fields like physics, psychology, medicine (e.g., antibiotic resistance), or social movements.
Dialectal Variation
British vs American Usage
Differences
No significant lexical differences. Spelling conventions follow national norms (e.g., 'level' vs. 'level', but no change). The term is equally standard in both financial jargon.
Connotations
Identical technical connotations in trading contexts.
Frequency
Equally frequent in UK and US financial markets and related media.
Grammar
How to Use “resistance level” in a Sentence
[Asset] faces resistance at [level].[Price] failed to break the resistance level of [number].Traders are watching the resistance level at [number].The stock bounced off the key resistance level.Vocabulary
Collocations
Examples
Examples of “resistance level” in a Sentence
verb
British English
- The share price resisted at the 550p level.
- The rally was resisted around the key technical level.
American English
- The stock resisted at the $80 level.
- The market is resisting around the 200-day moving average.
adverb
British English
- The price moved resistance-level upwards before falling. (Uncommon/awkward)
- Not a standard adverbial form.
American English
- Not a standard adverbial form.
- The asset traded resistance-level high. (Uncommon/awkward)
adjective
British English
- The resistance-level zone was clearly identified on the chart.
- They placed sell orders at resistance-level prices.
American English
- The resistance-level area proved too strong to break.
- We analysed resistance-level data from the past quarter.
Usage
Meaning in Context
Business
The company's share price struggled to move beyond the £15 resistance level.
Academic
The study examined public resistance levels to the proposed policy reforms over time.
Everyday
I've hit a resistance level in my weight loss journey; I can't seem to lose more.
Technical
The virus developed a high resistance level to the first-line treatment.
Vocabulary
Synonyms of “resistance level”
Vocabulary
Antonyms of “resistance level”
Watch out
Common Mistakes When Using “resistance level”
- Using 'resistance' alone when the specific price point is crucial (e.g., 'It hit resistance' vs. 'It hit the 200-day resistance level').
- Confusing 'resistance level' with 'support level' (the opposite concept).
- Treating it as a guaranteed reversal point rather than a probabilistic area.
FAQ
Frequently Asked Questions
No. It is a probabilistic concept based on past price action and market psychology, not a certainty. Prices can and do break through resistance levels.
A sustained break above a resistance level, often on high volume, can signal strengthening bullish sentiment and may see the old resistance level turn into a new support level.
Yes, metaphorically. It can describe any point where progress faces significant opposition, e.g., 'The reform met a political resistance level in parliament.'
A resistance level is a price ceiling where selling pressure may emerge. A support level is a price floor where buying interest may increase, halting a decline.
A specific price point in financial trading at which the upward movement of an asset is expected to pause or reverse due to increased selling pressure.
Resistance level is usually technical / financial / formal in register.
Resistance level: in British English it is pronounced /rɪˈzɪstəns ˌlevəl/, and in American English it is pronounced /rəˈzɪstəns ˌlevəl/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “Hit a wall (metaphorically similar)”
- “Meet resistance”
- “Run into a ceiling”
Learning
Memory Aids
Mnemonic
Imagine a price trying to climb a hill (an uptrend). The 'resistance level' is like a heavy ceiling at a certain height that pushes the price back down whenever it tries to break through.
Conceptual Metaphor
PRICES ARE ENTITIES MOVING ALONG A PATH (UP OR DOWN). A RESISTANCE LEVEL IS A CEILING/ROOF OR A SOLID BARRIER ON THAT PATH.
Practice
Quiz
In technical analysis, what is the primary function of a 'resistance level'?