According to technical analysts, a shift in market fundamentals will ________.
A)be reflected in share prices immediately
B)lead to a gradual price change that can be recognised as a trend
C)lead to high volatility in share market prices
D)leave prices unchanged

Question

Quizplus · Accepted Answer

Technical analysts believe that a shift in market fundamentals will lead to a gradual price change that can be recognised as a trend, rather than an immediate change in share prices. This is because technical analysis is focused on identifying trends and patterns in price movements over time. High volatility in share market prices may occur in response to other factors, such as unexpected news or events, but is not necessarily linked to a shift in market fundamentals. Leaving prices unchanged would not be an expected outcome of a shift in market fundamentals.

According to Technical Analysts, a Shift in Market Fundamentals Will