Bearish Events for Technical Analysts in CFA Level 1 Exam | Test Prep

Bearish Events

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Question

Which of the following events would a technical analyst interpret as bearish?

Answers

Explanations

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A. B. C. D.

Explanation

Credit balances result when investors sell stocks and leave the proceeds with their brokers, expecting to reinvest them shortly. Technicians view a decline of credit balances as a decrease in buying power and a bearish sign.