Series XVMediumTechnical Analysis

In technical analysis, a 'resistance' level is a price level at which:

AThe stock always breaks out to a new high
BBuying pressure is strong enough to prevent the price from falling further
CSelling pressure tends to emerge and cap further price risescheck_circle
DTrading is halted by the exchange

Correct answer

C. Selling pressure tends to emerge and cap further price rises

lightbulbDetailed Solution

Resistance is a price zone where selling interest historically overwhelms buying, halting or reversing an up-move. Its mirror image is support, where buying halts a decline. A decisive break above resistance (or below support) is often read as a continuation signal by technical analysts.

Reference: NISM Series XV Research Analyst, Chapter 4.

Practice more Series XV questions

Timed mocks and adaptive practice — free.

Start Practising Free

More from Series XV

See all Series XV questionsarrow_forward

Keep going

One answered question is a start. These hubs cover the rest of the syllabus.

timerFree Mock Quizarrow_forwardA timed quiz you can take right now in the browser — no sign-up, instant score.menu_bookStudy Notesarrow_forwardChapter-by-chapter explainers written to be read in five minutes, not five hours.translateFinance Glossaryarrow_forwardEvery SEBI and markets term you'll meet in the syllabus, defined in plain English.routeLearning Pathwaysarrow_forwardGuided routes into real roles — Research Analyst, Mutual Fund Distributor and more.grid_viewAll 26 NISM Seriesarrow_forwardBrowse every certification, its syllabus and who each one is actually for.descriptionThe NISM Guidearrow_forwardRegistration, fees, pass marks and exam-day logistics, start to finish.