Gathering Resistance Gathering Resistance is the buyer's enemy: When a stock is rising, Gathering Resistance is the thing that most often brings an end to the rise. It's where sellers hide in larger than usual numbers, ready to provide either a short-term pullback to a strong stock or a downside reversal to a rally that has run its course. When venturing a purchase, therefore, it's best to avoid doing so at Gathering Resistance.   Stocks are best sold at Resistance rather than purchased. When Resistance Is Broken: Gathering Resistance is where sellers have concentrated forces. Resistance that is ultimately broken, therefore, tends to mark either the start of a new uptrend or the continuation of an old one. Gathering Resistance, when broken, tends to serve, thereafter, as Gathering Support (The Buyer's Friend) and should be treated as such. Support & Resistance Tables - General Observations: Gathering Resistance is always located above the previous day's Closing Price (labeled "CL" on a Support & Resistance Table) and is always highlighted in blue. When there is no blue highlighting above the previous day's Closing Price, it means that there is no area of Gathering Resistance for that particular day; and that only individual aspects of Resistance exist. Areas of Gathering Resistance that may occur between the previous day's Close and the previous day's High are not highlighted in blue. They can be identified, however, by applying the general rule that two or more individual aspects of Resistance that are relatively close in price to one another constitute an area of Gathering Resistance. Identifying An Overbought Condition: A stock is Overbought when its price rises to the extreme upper end of a Support & Resistance Table. An Overbought stock that reaches an area of Gathering Resistance is extremely vulnerable to a pullback.