CS Executive · Corporate Accounting and Financial Management · Security Analysis
In technical analysis, a 'resistance level' refers to:
A resistance level is a price at which selling pressure is expected to stop or reverse an upward price move, acting as a ceiling. Support is the opposite concept, a floor where buying interest halts a decline.
- AA price level at which selling pressure is expected to halt an upward moveCorrect
- BA price level at which buying is expected to halt a downward move
- CThe average price over the last 200 days
- DThe intrinsic value found from discounted cash flows
Explanation
Resistance is a price ceiling where supply is expected to stop a rise. The level where buying halts a fall is support, so that option is the opposite. Moving averages and intrinsic value are different concepts.
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