Technical Analysis
Resistance — Definition & Example
A price level at which selling interest historically exceeds buying pressure — a ceiling where price tends to reject.
Resistance is the mirror of support: prior swing highs or distribution zones where supply repeatedly overwhelms demand. Strong resistance typically requires multiple rejections to confirm. When broken decisively, former resistance often becomes new support. Used for short entries, profit targets on long trades, or fade setups in ranging markets.
Example
NIFTY has rejected at 25000 three times in a month — strong resistance. A short scalp at 24990 with stop at 25020 plays the rejection. If price closes above 25020 with volume, the level is broken and now a long bias is favoured.
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