A Technical Analyst Would Consider the Following a Strong Buy

question 29

Multiple Choice

A technical analyst would consider the following a strong buy signal:

• A) A graph of declining prices ends in a trough followed by an upward trend that breaks through the declining trend channel.
• B) A graph of increasing prices ends in a peak followed by a downward trend that breaks through the rising trend channel.
• C) A graph begins to trade in a flat trend after it breaks out of its rising trend channel
• D) A graph begins to trade in a declining trend after it breaks out of its flat trend channel
• E) None of the above

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Definitions:

Carrying Cost

The total cost of holding a specific inventory, including storage, insurance, taxes, and opportunity costs, over a certain period.

Restocking Costs

Restocking costs are expenses associated with replenishing inventory, including purchasing, shipping, handling, and storage costs.

Carrying Cost

The total cost of holding a particular inventory, including storage, insurance, depreciation, and opportunity costs.

Variable Cost

Costs that change in proportion to the level of goods or services produced by a business.