Question:

A stock is declining in price and reaches a price range wherein buying activity is sufficient to stop the decline. This range is best described as the: 
A. change in polarity point. 
B. resistance level. 
C. support level. 

Answer = C 
The support level is defined to be a low price range in which buying activity is sufficient to stop the decline in price. 

CFA Level I 
"Technical Analysis," Barry M. Sine and Robert A. Strong 
Section 3.2 

 

 

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