Technicians believe that an industry or stock that is outperforming the market will tend to
A) Continue to outperform the market.
B) Return to normal.
C) Reverse trend.
D) Meet a resistance level.
E) Form head and shoulder patterns.

Question

Quizplus · Accepted Answer

Technicians believe in the trend-following principle, which suggests that a trend in motion is likely to continue rather than reverse. Therefore, if an industry or stock is outperforming the market, it is likely to continue outperforming in the future.

Technicians Believe That an Industry or Stock That Is Outperforming