A ________ level is the price range at which the technician would expect a substantial increase in demand for the stock. A ________ level is the price range at which the technician would expect an increase in the supply of the stock to cause any price increase to reverse abruptly.
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A. B. C. D.B
Increase demand will resist price falls, so when a price falls to a level which triggers strong demand - the price will not fall below this support level. Resistance level is a price range where trade activity in that stock will tend to reverse the price trend - this is usually due to investors having set a target price range for trade execution.