Which of the following is true regarding the support level?
A) Resistance levels tend to develop due to profit taking.
B) It is the level at which a significant increase in demand is expected.
C) It is a lower boundary where buyers will act to prevent any additional price declines.
D) All of the above are true for support levels.

Question

Quizplus · Accepted Answer

All the statements provided are true regarding support levels. Support levels are indeed areas where buyers are expected to enter the market (or increase their demand) to prevent prices from falling further, often due to perceived value at these levels. This can be due to a variety of reasons, including profit-taking at resistance levels, which can lead to prices dropping to support levels where buyers see an opportunity to buy at lower prices.

Which of the Following Is True Regarding the Support Level