RE: Break out...23 Apr 2020 14:43
Hi Frankie, thought I'd help you out with resistance. The simplest way to explain it is......say a companies share price is rising, more buys than sells, the resistance level is the level where more more sellers show up, pushing the share price back and making that level difficult to get past. Two things can happen when the price reaches this level. Either the resistance level holds, the share price is resisted from going higher and an upward trajectory turns into a downward one. Or, the resistance is broken and the share price is back off to the races and continues higher.
Hope this helps!