1. One has to be familiar with the Resistance aspect as it is the price level at which selling is strong and as a net result no further gain in price is seen. One can relate with a resistance as a limit where rubber band gets the most stretched.

2. Resistance is the price where sellers overtakes the buyers and thus supply overtakes the demand and as a net result price stops rising. In case stock is able to move ahead the resistance price than it means that the stock has undertaken the breakout action and in the ensuing battle between bulls and bears; bulls have got an upper hand.

3. When a stock breaks out it means that buyers have reposed faith in the stock and stock will now have a new resistance level to encounter which is found with the help of Fibonacci series or one can find the same with Pivot calculator.