Resistance level definition

A - B - C - D - E - F - G - H - I - L - M - N - O - P - Q - R - S - T - U - V - W - Y

See all glossary trading terms

A resistance level is a key tool in technical analysis, indicating when an asset has reached a price level that market participants are unwilling to surpass.

Resistance levels are often used in conjunction with support levels, or the point at which traders are unwilling to let an asset’s price drop much lower. Traders will often identify areas of support and resistance in order to make decisions on trades, including when to place stops and limits.

If an asset does break through its resistance level, then some traders believe it will carry on rising in price, or ‘rally’, until a new resistance level is found.

Visit our education section

Find out more about support and resistance.

Help and support

Get answers about your account or our services.

Get answers

Or ask about opening an account on 1800 601 799, or +61 (3) 9860 1799, or helpdesk.au@ig.com.

We're here 24hrs a day from 1pm Saturday to 7am Saturday (AEST).