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Question of the Week - Quantitative Methods

AdaptPrepAdaptPrep Des Moines, IA, USAPosts: 211 Sr Associate
edited March 2015 in Level 1 Questions
A highly publicized stock approaches $100 but falls before reaching the price. This pattern is continued for several months, until the stock jumps to $110. Which of the following is the most general consensus?

Question of the Week - Quantitative Methods 39 votes

$100 is the new support level.
71%
JaminioSilvaLeChiffreAndrewKokAdaptPrepdesantolStuj79RandallK27krishTagoogs1484rdxgcompolongokriouxdkennedyadtrdVixen71hamiltontmcinernyHugo_Pintosophiamullerdkov 28 votes
$110 is the new resistance level.
23%
Yardley123rsparksnvtraderthendry7Bittersweetkylemaloney17bvanove12ecoffey123Richie321 9 votes
The stock is in an uptrend.
5%
EQ_ArbitragePahtsan 2 votes

Comments

  • AdaptPrepAdaptPrep Des Moines, IA, USAPosts: 211 Sr Associate
    $100 is the new support level.

    Before the jump, $100 was the resistance level, as the price was resisting going that high. It wouldn't make sense for $110 to be a resistance level, because the stock has already increased to that point. There may or may not be an uptrend, but one increase does not make a trend. General thought would be, though, that the price of $100 is a support level -- it is deemed unlikely the stock will drop below $100 because the resistance has been broken.

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