Exam 16: Technical Analysis

Exhibit 16.1 Use the Information Below for the Following Problem(S) Daily closings for the Dow Jones Industrial Average are given in the table below. Day Price 1 9867 2 10025 3 10524 4 10210 5 10104 6 9925 -Refer to Exhibit 16.1.Calculate a 5-day moving average for day 6.

Technicians believe,when the relative strength index is stable or ____,during a ____ market,the stock should do well during a ____ market.

For technical trading rules to generate returns that are superior to a buy-and-hold strategy,net of transaction costs,the market would have to be

A high put/call ratio indicates a pervasive bearish attitude by sophisticated investors so it is a bearish indicator.

An increase in debit balances means more investing by naive investors and would be a bearish indicator.

If 10 percent of the stocks are selling above their 200 day moving average,the market is considered to be oversold.

A technical analyst might use mutual fund cash positions as follows:

Candlestick charts indicate the price change from open to close by shading whether the market went down or up for the day.

The ratio of the price of a stock or an industry group to the value of the market index is called the

A narrowing of the T-bill-Eurodollar and ____ signal,because ____.

The Confidence Index increases as the yield on lower grade bonds decreases,everything else being constant.

The cumulative number of shares that have been sold short by investors and not covered is called

If the 50-day moving average line crosses the 200-day moving average line from below on good volume,this would be a bullish signal.

A chart used to show only significant price changes,regardless of their timing,is the

A resistance level is the price range at which the technician would expect an increase in the demand of stock and a price reversal.

The following are classified as contrary trading rules,except the

Contrary trading rules assert that investors tend to be wrong except at market peaks and troughs.

A technical analyst would consider a put call ratio of ____ as a bearish indicator.

Technicians believe that an industry or stock that is outperforming the market will tend to

Which of the following is not considered an assumption of technical analysis?