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A Resistance Level Differs from a Support Level in That

Question 71

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 investors would sell a stock; at a support level most investors would be willing to purchase a stock.
D) Choices a and
E) None of the above.

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