In technical analysis,a price level below which the market price is temporarily unlikely to fall is a:
A) trend channel.
B) resistance line.
C) support line.
D) trend line.

Question

Quizplus · Accepted Answer

A support line is a specific price level below which the market price is temporarily unlikely to fall. It is considered a level of support because the buying pressure of traders becomes strong enough to prevent the price from declining further. Trend channels, resistance lines, and trend lines are all different technical analysis tools used to identify market trends and potential levels of support and resistance, but they do not specifically indicate a price level below which the market price is unlikely to fall.

In Technical Analysis,a Price Level Below Which the Market Price