Resistance at a round number is more likely if what condition is met?

Resistance at a round number tends to be more likely when the stock is achieving an all-time high. This phenomenon occurs because psychologically significant price levels, such as round numbers, attract traders' attention. When a stock nears an all-time high, many market participants may set sell orders around these psychological thresholds, anticipating a pullback when the price approaches them. This behavior creates an increased selling interest, reinforcing the resistance.

As the price approaches this level, the clustering of sell orders can deter further upward movement, making it more probable for the stock to encounter resistance precisely at that round number. In the context of technical analysis, it's understood that market participants often react to round numbers in their trading decisions, heightening the probability of resistance being encountered at those levels.