The Call Resistance level, like the Put Support level, is one of the key levels in our models. This is the price level where there is more Call GEX.
This is the level that our model projects as a potential level for:
- A resistance where the price bounces back down. Just like in the case of the Put Support level where prices find support, in the case of the Call Resistance the price find a resistance that has the potential to slow down price breakout.
- An inflection point for an accelerated upside.
You can find the Call Resistance level in our model in the main chart.
You can find the Call Resistance Level within our Premium Membership.
Call Resistance Level on TradingView
You can leverage the Menthor Q Levels Indicator in TradingView to add the levels to the chart.
What happens when the price hits the Call Resistance Level?
Generally when the spot price approaches the Call Resistance Level there are two possible technical scenarios for the market:
- Bounce to the downside. The Call Resistance level is also structurally the level where most investors are positioned. Like the Put Support level it makes this level very sticky. When a price level is sticky, the price can be attracted to it, but it may be difficult to break above it. The price will usually break off as the market maker will start shorting at those levels. The market maker will be in long gamma condition, and in those cases when its delta increases it shorts to stay delta hedged. This activity will become a technical short term bearish force. It is also fair to say, that as we reach that Call Resistance level, calls will be monetized and closed. That once again will have an effect for the market maker that will close its long position to return to delta neutral.
- Roll Position. When we reach this level, the bulls will want to see investors repositioning those calls higher. That would roll the Call Resistance level higher. Market markets would then be pushing the market higher if the spot price moves incrementally towards the new Call Resistance strike.
Within the Menthor Q Models we also have other Key Levels you should consider:
You can access these levels within our Premium Membership.