Question

"The more of the following characteristics that a bull breakout has, the more likely the breakout will be strong:"

A) High volume, narrow spread, close near the high, and follow-through
B) Low volume, wide spread, close near the low, and reversal
C) High volume, wide spread, close near the low, and follow-through
D) Low volume, narrow spread, close near the high, and reversal

Answer 1

A bull breakout refers to a significant upward movement in the market. The characteristics that make a bull breakout more likely to be strong are high volume, narrow spread, close near the high, and follow-through.

Step-by-step explanation:

A bull breakout refers to a significant upward movement in the market. The characteristics that make a bull breakout more likely to be strong are:

1. High volume: This means a large number of shares are being traded, indicating strong investor interest.
2. Narrow spread: A narrow spread between the bid and ask price suggests that buyers and sellers agree on the value of the stock.
3. Close near the high: If the closing price of a stock is near its highest price for the day, it indicates strong buying pressure.
4. Follow-through: A strong bull breakout is often followed by continued upward movement in the stock price.

Therefore, the correct answer is A) High volume, narrow spread, close near the high, and follow-through.