Capping shares is very simpley is a case of a larger share holder or group of share holders placing larger sell orders slightly above the current trading price. Thye may even sacrifice a small number of shares by at teh same time sellinging into the buy side.
This creates the impression that there is a large level of resistance at theat level that is going to be difficult to break through.
The intention of this is to hopefully have other shareholders who want out for what ever reason to sell down or at the current market price where those placing the "cap" are also buying.
It is a form of market maniputaltion that does happen but nowhere near as often as it is claimed to.
Many cases of claims of "capping" are nothing more than genuine sellers getting out and the true believers in the stock trying to convince themselves the reason they price is not going up in the manner they think it should is because of capping.
