PS D1: Technicals

Question 1

What is a “Breakout”?

Answer 1

A stock that breaks through resistance

Question 2

What is a “Breakdown”?

Answer 2

A stock that breaks through support

Question 3

What is “Resistance”?

Answer 3

A stock price area where sellers usually emerge preventing any further price increase

Question 4

What is “Support”?

Answer 4

A stock price area where buyers usually emerge, stemming any further price decline

Question 5

Define “Moving Average”

Answer 5

Average price of a stock over various time periods