Resistance Cases

C

In technical analysis, resistance is a term used to describe a price level that a security or an index has difficulty moving beyond. It is the opposite of support, which is a price level where buying pressure is strong enough to prevent a decline in price. Resistance occurs when market participants sell a security at or near a particular price level, resulting in the price being prevented from rising further.

Out of the options given, the correct answer is C. Inability to surpass prior high. This is because resistance occurs when a security or an index fails to move beyond a prior high. Prior high refers to a price level that a security or an index has previously reached but has not been able to exceed.

Option A, inability to break below prior high, does not refer to resistance. Instead, it is an indication of a strong support level. When a security or an index fails to move below a prior high, it suggests that there are buyers who are willing to step in and buy the security or index at that price, creating a floor of support.

Option B, inability to break below prior low, also does not refer to resistance. A prior low is a level where a security or an index has previously declined to, but has not broken below. If the security or index fails to move below this level, it indicates that there is buying pressure that is preventing it from declining further.

Option D, inability to repair beyond prior low, is not a commonly used term in technical analysis. However, if it refers to a security or an index failing to move above a prior low, it is not an indication of resistance. Rather, it suggests that the security or index is in a downtrend and is unable to make higher highs.

In conclusion, resistance occurs when a security or an index fails to move beyond a prior high. This indicates that there are sellers who are willing to sell the security or index at that price, preventing it from rising further.