The rally in Macy's, Inc. M may be over for now. The stock ran into resistance around $28.05 and has since backed off.
Resistance is a large group of investors who are looking to sell shares at, or close to, the same price. At resistance levels, there is more supply than demand. Buyers don’t need to force the price any higher as they can buy all they want to.
That’s why rallies end when they reach resistance levels.
$28.05 has been resistance for Macy’s since the end of December. Each time shares rose to this important level, the sellers overpowered the buyers and knocked the price lower.
It could be happening again.
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