Question

The price of a stock fluctuates between $43 and $60. If the time frame referenced encompasses the primary trend, the $43 price may be considered the ___________.

Answer 1

Answer: support level

Explanation:

The support level and the resistance levels are used by analysts for the identification of price points on a chart where a pause or reversal of the prevailing trend is being favored by the probability.

The support level occurs in a scenario whereby there'll a pause of a downtrend because of the concentration of demand. Therefore, in this case, the $43 price may be considered the support level.