Resistance Level

The resistance level represents a price zone that an asset has been attempting to breach for a specific period. There can be multiple points of resistance levels, as numerous attempts have created a resistance zone that reduces prices. It also represents the point where supply is too strong, preventing the price from going upwards. If any commodity is reaching resistance levels, then it means that the traders will sell it. The resistance level helps traders understand market sentiments and make informed decisions based on market psychology.