I purchased a number of shares of Bausch & Lomb a few days ago as it precipitously tumbled due to a possible connection between its Renu solution & some serious eye conditions. At any rate, it seemed to be a bargain price, and so far my hunch seems to be paying off, even though I don’t really play the market.
Today, a headline appeared, and I have no idea what it means:
Anybody? I tried googling, but today my Googlefu is weak.
Resistance
A price level at which rising prices have stopped rising and either moved sideways or reversed direction; usually seen as a price chart pattern.
Resistance Line
On a chart, a line drawn indicating the price level at which rising prices have stopped rising and have moved sideways or reversed direction.
(from http://traders.com/Documentation/RESource_docs/Glossary/glossary_NS.html)
The gap for BOL occured when the April 11 opening price was much lower than the closing price on April 10. Here’s a chart As you can see from the chart, the price has not been able to nudge above the high it had on April 11 since. This price (49.40, I guess) is the resistance for this gap.
I’ve seen “resistance” used to describe a point that a stock, dangit, just seems to not be willing to pass.
Let’s say I follow a given stock.
One day, it’s at $32. There’s some bad news, and it’s down to $28.50, but by the end of the day, it’s back at $31.
A year later, it’s at $40. It bounces around, but somewhere around $41, it seems to always come back down. I suppose it has “resistance” around $40 or so.
All you need to know is that it’s a term used by “technical analysts” so erase it from your mind.
. . .well, you also need to know that anything “technical analysts” say should be treated with the same amount of weight you’d treat a dart thrown by a monkey at a board, but that’s a given.