The level of resistance is this area or range on the chart, where the price meets pressure from sellers and drops down. In order to qualify a certain level as “resistance” this level must have been tested at least 3 times before, without the price growing much above it. Similarly to level of support, resistance its not a fixed price, but a range.

We say that as the prices grow, further growth becomes at some point limited, as people dont buy more of the shares. They rather sell to cash profits out.  You will find resistance when the stock is rising. As it rises, it becomes expensive, which means attractive for the early investors to sell and collect profit. Normally, stock sellers are trying to sell shares at their resistance levels so they can cash out when the prices are high.

There are certain indicators such as Pivot Points, which will show you where the levels of resistance are, but usually we look for them with a naked eye. You simply look at the candle chart and see which price area was tested a few times and every time after the stock touched this level, the price dropped. It is important to remember that 1. resistance levels can be both horizontal and diagonal and 2. if the resistance zone gets broken, the price is expected to grow even higher. A broken resistance will transform into a support level on the way back down.