A price range at which technicians feel that a significant increase in the price of the stock will be resisted is referred to as
A) supply threshold.
B) support level.
C) short interest level.
D) advancement level.
E) resistance level.

Question

Quizplus · Accepted Answer

A resistance level is a price point at which traders and investors believe that an asset's price will encounter resistance or downward pressure, as there are more sellers than buyers at that level. Technicians use resistance levels to predict potential areas of price reversals or consolidations. Therefore, a significant increase in price at the resistance level might be resisted, leading to a reversal in the stock's price trend. None of the other choices mention a price range at which resistance is expected.

A Price Range at Which Technicians Feel That a Significant