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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

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

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Solution

The term "support level" in technical analysis refers to B. Price level at which a stock may stop falling and bounce back. This is a price level where the stock has historically not fallen below, suggesting that investors see it as a good value at that price and are willing to buy, which can push the price back up.

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

Service level is the complement of the probability of a stockout. In other words, if a company sets the service level at 92% for a certain item it means they are willing to live with an 8% chance of having a stockout.  True False

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

A decline in the price levels is called

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