One of the most commonly heard components of technical analysis is the notion of a resistance level, which refers to
A)price levels below which it is unlikely for them to fall.
B)price levels above which it is difficult for stock prices to rise.
C)stock performance over a recent period to performance of the market or other stocks in the same industry.
D)the present discounted value of all the payments a stockholder will receive from each share of stock.

Question

Quizplus · Accepted Answer

A resistance level is a price level at which a large number of sellers are expected to emerge, making it difficult for the stock price to rise above that level. It acts as a barrier to further price increases. Conversely, a support level is a price level below which there is perceived to be a large amount of demand, preventing the stock price from falling further.

One of the Most Commonly Heard Components of Technical Analysis