Answer:
Buy 100 ABC at $82 Stop
Step-by-step explanation:
In the financial markets a resistance is an upper limit block on the market moving upward (buy). While the support is the lower limit on the market moving down (sell).
In this scenario we have a support of $75, resistance of $81 and the stock.is currently trading at $77. Just below the resistance.
If the analyst expects the stock to break the resistance of $81 then he should set a trade that is a buy since the market will go above $81.
When the market breaks a resistance it is expected to sky rocket, so the analyst will set a trade stop at $82, so that when the market is coming back down to the resistance level it will stop before it gets to $81.
On the other hand if a support is expected to be broken a sell trade is placed.