A resistance level differs from a support level in that
A) at a resistance level most investors would hold stock until the price improves; at a support level a stock becomes overvalued and investor interest is likely to decrease.
B) at a resistance level the analyst would expect a substantial increase in the demand for a stock; at a support level the analyst would expect a substantial decrease in the demand for a stock.
C) at a resistance level most investors would sell a stock; at a support level most investors would be willing to purchase a stock.
D) Choices a and b
E) None of the above.

Question

Quizplus · Accepted Answer

A resistance level is a price point where most investors would sell a stock, leading to increased supply and potential difficulty for the stock to rise above that level. In contrast, a support level is a price point where most investors would be willing to purchase a stock, leading to increased demand and potential difficulty for the stock to drop below that level.

A Resistance Level Differs from a Support Level in That