In technical analysis, a resistance level is a price level where the price of an asset has difficulty exceeding, at least temporarily. It represents a level where there is selling pressure on the asset, as traders and investors tend to sell the asset, causing the price to reverse. Resistance levels are often identified by looking at previous highs or areas where the price has struggled to break above in the past. Once a resistance level is broken, it may become a support level, as the buying pressure is expected to increase at that level.