Bullish Trends in the Stock Market

Identifying a Bullish Trend

Prev Question Next Question

Question

Which of the following depicts a bullish trend in the stock market?

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

D

A bullish trend in the stock market refers to a situation where the prices of stocks are rising or expected to rise over a period of time. This is generally a positive trend for investors, as it suggests that the overall sentiment towards the market is optimistic and that there may be opportunities for profit.

Out of the given options, the answer that depicts a bullish trend in the stock market is option C - "Stock price never drops below support level."

The "support level" refers to a price level that a stock's price has difficulty falling below. It is a level where there is buying pressure, which is why the stock price tends to bounce back up from this level. If the stock price never drops below this level, it suggests that the market is bullish and that investors are willing to buy the stock even at higher prices, thereby pushing the price higher.

Option A - "Stock price drop below support level" indicates a bearish trend in the stock market. When the stock price falls below the support level, it indicates that the buying pressure has weakened, and that the sentiment towards the stock has turned negative.

Option B - "Stock price drop below resident level" is not a term commonly used in stock market analysis. Therefore, it is not a valid answer choice.

Option D - "None of these" is not a correct answer since there is a valid answer in option C.

In summary, a bullish trend in the stock market is where prices are rising, and option C, "Stock price never drops below support level," depicts this trend.