Technical Analysis is applicable to the following asset/s:Question 20Answera.Stocksb.Commoditiesc.Both A and Bd.None of the above
Question
Technical Analysis is applicable to the following asset/s:Question 20Answera.Stocksb.Commoditiesc.Both A and Bd.None of the above
Solution
The correct answer is c. Both A and B.
Technical Analysis can be applied to any asset that has historical trading data. This includes stocks, commodities, futures, indices, etc. The main requirement is that the asset has a history of trading in a market where supply and demand forces are free to act.
Step 1: Understand the question - The question is asking which assets can technical analysis be applied to.
Step 2: Know what each asset is - Stocks represent shares in a company, while commodities are basic goods that can be transformed into other goods and services.
Step 3: Understand what technical analysis is - Technical analysis is a trading discipline used to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume.
Step 4: Apply the knowledge - Since technical analysis can be used to predict future price movements of any asset that has historical trading data, it can be applied to both stocks and commodities. Therefore, the answer is c. Both A and B.
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