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Stock Market Fundamentals

Total questions: 13

Worksheet time: 52mins

Name
Class
Date
1.

Technical analysis reflects the idea that stock prices:

a)

move upward over time.

b)

move inversely over time.

c)

move in trends.

d)

move randomly.

2.

Technical Analysis uses

a)

Traded Price and Volume

b)

News and Corporate Actions

c)

Revenue and Profit Margin

3.

Double top is a

a)

Bullish indicator

b)

Bearish indicator

4.

Double bottom requires

a)

Both Price and Volume Confirmation

b)

Only Price

c)

Only Volume

5.

Head and Shoulder pattern is a

a)

Bearish Reversal Pattern

b)

Distribution pattern

c)

Bullish pattern

6.

Bullish Engulfing pattern is

a)

Two candle formation where bearish candle is covered by bullish candle

b)

One candle formation, big bullish candle

c)

Two candle formation, where second candle is green with high volume

7.

What is support level?

a)

Level where the weakness of a price see temporary strength

b)

It is a break out point

c)

Where supply is more than demand

8.

A support level is a price range:

a)

at which a significant increase in demand for a stock is expected.

b)

at which a significant increase in supply of a stock is expected

c)

below which a stock price cannot go.

d)

above which a stock price cannot go.

9.

At RSI over 70, What Will you do?

a)

Buy all stocks you can

b)

Sell or take profits

c)

Not sure - stay on sideline

10.

What is an ETF in stock market

a)

Exchange Traded Fund (ETF)

b)

Electronic Funds Transfer

c)

Early Termination Fee

11.

why is diversification a recommended investment strategy

a)

Diversification can help an investor manage risk and reduce the volatility of an asset's price movements

b)

Diversification helps you analyze how companies and market sectors are doing in the stock market.

c)

The main benefit of diversification is that it reduces the exposure of your investments to the adverse effects of any individual stock

d)

Diversification is a technique that reduces risk by allocating investments among various financial instruments, industries and other categories

e)

All the above

12.

RSI below 30 indicates that a stock is

a)

Oversold

b)

Overbought

c)

Undecided

13.

if the 5 day EMA crosses the 20 day EMA

a)

Buy the stock

b)

Sell the stock