CFA Practice Question

CFA Practice Question

A price level at which the demand for a stock is expected to increase significantly is best characterized by which of the following?
A. Support level.
B. Resistance level.
C. Reversal level.
Explanation: Technical analysts frequently examine historical price information to determine important "support" and "resistance" levels. A support level is a price range at which the demand for a stock is expected to increase, i.e. buying pressure will increase forcing the stock price upward, or will prevent it from moving down. A resistance level is a price range at which the supply of a stock is expected to increase significantly, forcing the price of the stock down, or preventing it from advancing.

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farhan92 got a question about technical analysis correct :D
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