CFA Practice Question

There are 221 practice questions for this study session.

CFA Practice Question

The price range at which the technician would expect a substantial increase in demand for a stock is called a ______.
A. resistance level
B. support level
C. moving-average line
Explanation: Support is the price level at which demand is thought to be strong enough to prevent the price from declining further. The logic dictates that as the price declines towards support and gets cheaper, buyers become more inclined to buy and sellers become less inclined to sell. By the time the price reaches the support level, it is believed that demand will overcome supply and prevent the price from falling below support.

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