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HOW TO IDENTIFY SUPPORT AND RESISTANCE ZONES
Answers
1. B. The question defines resistance.
2. B. It will find support. Support develops on the way down, resistance on the way up.
3. B. Moderate overbought levels do not hold a great amount of significance. Besides, the question asked for descriptions in the text and there were no references to “moderately overbought conditions.”
4. D.
5. demand, temporarily
6. D. That’s because D represents two previous minor lows and previous highs and lows represent potential support levels.
7. C. Support reverses its role to resistance when penetrated on the downside. Resistance reverses its role to support when penetrated on the upside.
8. A.
9. C. Retracements are only intelligent places to expect a reversal, ...
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