'Resistance levels' are most frequently used in the area of:

A) asset pricing
B) fundamental analysis
C) technical analysis
D) speculative analysis

Question

'Resistance levels' are most frequently used in the area of:

A) asset pricing
B) fundamental analysis
C) technical analysis
D) speculative analysis

Quizplus · Accepted Answer

A resistance level is the range of prices at which the technical analyst expects an increase in the supply of shares such that any price increase will reverse.The price cannot be sustained above the resistance level.It is argued that resistance levels follow a series of price declines.The decline in price leads some investors who bought at higher prices to look at ways of minimising their losses.These investors set a target price such that there is excess supply of the stock at the target price level.

'Resistance Levels' Are Most Frequently Used in the Area Of