Question #133 ·
What do support levels around $107,000 and resistance at $111,000 tell beginners about price trends?
- These levels show exact profit targets and guaranteed trade outcomes
- Support means price always trends downward; resistance means upward reversal
- Support suggests buying interest floor; resistance signals potential selling ceiling Right answer
Why is this the correct answer?
This is correct because support at $107,000 indicates a price level where demand has historically emerged, giving a ‘floor,’ while resistance at $111,000 marks where selling pressure tends to mount, creating a ‘ceiling.’ Beginners can use these levels to plan entry and exit points.