In technical analysis, ________ is a value below which the market is relatively unlikely to fall.
A) book value
B) resistance level
C) support level
D) the Dow line

Question

Quizplus · Accepted Answer

A support level is a price level where the market has found support and is expected to bounce back up from. This is often seen as a floor for a stock's price, as it's the level where buying pressure overcomes selling pressure. Traders and investors use support levels to determine entry and exit points for positions, and can use them as a stop loss level if the market breaks down below the support level. Therefore, a support level is the value below which the market is relatively unlikely to fall.

In Technical Analysis, ________ Is a Value Below Which the Market