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

This is the concept of momentum in technical analysis. If an industry or stock is showing strength and outperforming the market, it is likely to continue doing so until there is a change in the underlying fundamentals or a shift in market sentiment.

Technicians Believe That an Industry or Stock That Is Outperforming