QUESTION 85

1. Which of the following is an advantage of a moving average line?

   		a. It identifies the price below which a stock is unlikely to trade.
   		b. It identifies the price above which a stock is unlikely to trade.
   		c. It combines elements of fundamental analysis with charting techniques used in technical analysis.
   		d. It smooths out minor short-term variations in price changes.

QUESTION 86

1. Hanna is seeking to purchase a stock that is undervalued. Which of the following will be most likely to fulfill her requirements?

   		a. One with a low P/E ratio.
   		b. One with a high PEG ratio.
   		c. One trading near its resistance level.
   		d. One trading near its moving average price.