Drawer tests financial definition of drawer tests
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Related to drawer tests: posterior drawer test
The event of a price movement
that approaches a support level
or a resistance level
established earlier by the market
. A test is passed if prices do not go below the support or resistance level, and the test is failed if prices go on to new lows or highs.
The attempt by a stock price or a stock market average to break through a support level or a resistance level. For example, a stock that has declined to $20 on several occasions without moving lower may be expected to test this support level once again. Failing to fall below $20 one more time would be considered a successful test of the support level and a bullish sign for the stock.
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25) In a study evaluating 29 patients treated with this method, all patients demonstrated a significant improvement on KT-1000 testing, in addition to all but one having a negative posterior drawer test