5.What does technical analysis use the word "support level" to mean? A. Potential ceiling for stock prices B. Price level at which a stock may stop falling and bounce back C. Indicator of overbought conditions D. Average price of a stock over a specific period
Question
5.What does technical analysis use the word "support level" to mean? A. Potential ceiling for stock prices B. Price level at which a stock may stop falling and bounce back C. Indicator of overbought conditions D. Average price of a stock over a specific period
Solution
The term "support level" in technical analysis refers to option B. It is the price level at which a stock may stop falling and bounce back. This is because at this level, the demand is strong enough to overcome the selling pressure, thus preventing the price from falling further.
Similar Questions
In relation to technical analysis, a support level is:Question 8Select one:a.a level beyond which the market is unlikely to rise.b.a level below which the market is unlikely to fall.c.an equilibrium price level supported by earnings and cash flows.d.the complete cycle of a market wave.
According to Technical analysis, if a stock price is on a rising trend, it is likely to encounterASupport levelBSelling point levelCResistance level
A resistance level is a price rangea.at which a significant increase in demand for a stock is expectedb.below which a stock price cannot goc.at which a significant increase in the supply of a stock is expectedd.above which a stock price cannot goClear my choice
When technical analysts say a share has good relative strength, it means that ___.Select one:a.The ratio of the price of the share to a market has trended upwardb.The share has performed well compared to other shares in the same risk category, as measured by betac.Recent trading volume in the share has exceeded the normal trading volumed.The total return on the share has exceeded the total return on other shares in the same industry
Which of the following technical indicator compares the strength on buy and sell in order to find out whether a stock is overbought or oversold?Question 19Select one:a.On-balance volumeb.Relative strength indexc.Moving averaged.Moving average convergence and divergence
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