When a stock is advancing, what might it encounter at a round number?

When a stock is advancing and approaches a round number, it may often encounter a resistance level. Round numbers (like 50, 100, 150) are psychologically significant for investors, as they serve as common points of reference. Traders might set sell orders or take profits at these landmarks, which can create selling pressure, leading to resistance against the upward movement of the stock.

Resistance can manifest because many investors perceive round numbers as critical thresholds; therefore, a stock might struggle to surpass these levels as they attract increased caution and profit-taking behavior. This is particularly true when the stock is already in an upward trend, and traders are uncertain about whether to push beyond these key price levels or not. Hence, while it is possible for a stock to break through a resistance level, the round number can initially serve as a barrier against further price increases.