There isn’t enough demand for the stock to cause it to rise any higher. An example of resistance is shown in Figure 13.9. In this example, the stock tried to break through resistance at $75 per share four times. Once again, sellers prevented the stock from going higher. It then retreated until it reached support at $60. How do sellers “prevent” the stock from moving higher? They cannot prevent it. However, those who believe that resistance will hold continue to sell the stock. On the other hand, there must be a sufficient number of buyers to accumulate all the stock for sale and continue to
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