According to technical analysts, a shift in market fundamentals will ________.
A) be reflected in stock prices immediately
B) lead to a gradual price change that can be recognized as a trend
C) lead to high volatility in stock market prices
D) leave prices unchanged

Question

Quizplus · Accepted Answer

Technical analysts believe that a shift in market fundamentals will lead to a gradual price change that can be recognized as a trend. They look for patterns and trends in stock prices over time and use them to make predictions about future price movements. The belief is that changes in market fundamentals will eventually be reflected in stock prices, but it may take some time for this to happen. High volatility may occur, but typically as a result of other factors, such as market sentiment or unexpected events. Therefore, B is the best choice.

According to Technical Analysts, a Shift in Market Fundamentals Will