Q1. The resistance level signifies the price at which a stock's supply would be expected to: A) increase substantially. B) decrease substantially. C) cause the stock price to "break out".
Q2. Which of the following would signal a technical analyst to expect a sharp increase in demand for a stock? A) The spread between the yield on high-quality and low-quality bonds widens. B) Price movement into the analyst's support level range. C) Movement into the analyst's resistance level range.
Q3. An indicator calculated as the ratio of the average yield of 10 top-grade corporate bonds to the average yield on Dow Jones 40bond is known as: A) relative strength index. B) confidence index. C) breadth index.
Q4. Which one of the following would be a bullish signal to a smart-money technical analyst? A) Average-quality bond yields move closer to high-quality bond yields. B) The T-bill Eurodollar spread widens. C) The debit balances in brokerage accounts decrease.
Q5. When technical analysts say a stock has good "relative strength," they mean the:
A) recent trading volume in the stock has exceeded the normal trading volume. B) ratio of the price of the stock to a market index has trended upward. C) stock has performed well compared to other stocks in the same risk category as measured by beta.
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