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Series 7: Investment Information & Recommendations
Series 7 practice questionmediumAnalysis and Valuation 499

In technical analysis, resistance is best described as:

  1. Aa price level where selling pressure may limit further advances✓ Correct answer
  2. Bthe dividend payout ratio
  3. Ca Treasury auction result
  4. Dan SEC registration threshold
Explanation

Why Aa price level where selling pressure may limit further advances

Resistance is a chart concept referring to a price area where supply may overcome demand. Support is the opposite, where buying interest may emerge.

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