A Resistance Level Differs from a Support Level in That

question 42

Multiple Choice

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 investor would sell a stock; at a support level most investors would be willing to purchase a stock.
• D) at a resistance level, the technician would expect to an increase in demand for a stock.
• E) none of the above.

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