An area on a chart that turns back a stock’s advance is called resistance. Therefore, a pivot point is a type of resistance level. A stock corrects, forms a bottom and then builds the right side of its base. As it nears the old peak, a stock often hits resistance and moves sideways or lower for a few days or weeks. This action forms the handle. A stock breaks out when it shoots above the high of the handle, which is called the pivot point.