16. A combination of increasing on-balance volume along with declining price action is suggestive of: a) Volatility expansion b) Volatility compression c) A bearish divergence d) A technical chart e) A bullish divergence 17. A basic assumption of technical analysis in contrast to fundamental analysis is that: a) The stock market is inefficient b) Financial statements provide information crucial in valuing a stock c) A stock's price will approach its intrinsic value over time d) A technical analyst would evaluate the amount of short selling, the volume of trading, and the P/E ratio of a stock e) Security prices move in patterns, which repeat over long periods 18. A resistance level is the price range at which technical analysts would expect the (choose all that are correct): a) Demand of a stock to decrease substantially b) Demand of a stock to increase substantially c) Supply of a stock to increase substantially d) Supply of a stock to decrease substantially e) Both b and d 19. An RSI divergence a) Is only valid if it occurs in overbought or oversold situations b) Does not exist. RSI can't show a divergence. c) Signals that price is losing momentum d) a and 20. A resistance level is (choose all that are correct) a) A price level previously moved into from below and bounced back down b) A price level previously moved into from above and bounced back up c) A price level where supply is less than demand d) A price level where demand equals supply