CFA Practice Question

There are 221 practice questions for this study session.

CFA Practice Question

A support level is a price level that ______

A. is highly likely for a stock price to fall below.
B. price will not rise above.
C. is unlikely for a stock or index to fall below
Correct Answer: C

A support level is a price that it is highly unlikely for a stock to fall below.

User Contributed Comments 6

User Comment
cgeek unlikely in NOT highly unlikely !!!!
achu choice A: is highly likely that the stock price will fall below- is resistance (?)
JimM Resistance is above, support is below.

I always love it when it breaks through going up or down. Not a very good support (resistance) level, then, was it?
magicchip Dow 8000 anyone? :-)
cong Support level = lower bound, resistance level = upper bound
Yrazzaq88 I don't like the wording... "Highly unlikely for the stock to fall below"

Support lines are easily broken if there is not enough support. Ok, maybe it is expected for buying to happen there, but that is not the case all the time.
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