Price near resistance

Price is near resistance. The stock has reversed here before. Many investors now find it to be expensive and may wish to sell.

Price near a resistance level is an indication that the price will fall. The definition of resistance says that more and more sellers will be active the closer the price gets to the resistance level. It can be favourable to place a sell order a little below the resistance level when wanting to sell such stocks.

Please note that a break upward through resistance will trigger a buy signal. The price can potentially rise very much in a short time. Especially in the case of positive volume development or stocks in a rising trend, it can be a good idea to wait and not sell on resistance.