Series 7 - General Securities Representative Exam
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A stock traded up to 80, made a 52 week high and sold off. 2 Months later it traded up to 80 again and sold off. Another 3 months passes and the price explodes through 80 and reaches 88 on heavy volume. The 80 price level is now
5 month moving average
A
Resistance
B
Support
C
The 52 week low
D
Explanations
80 was previously resistance (it made double top there). Technical analysis dictates that once resistance is breached, it then becomes support. The 80 price area is now support