test

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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.

test

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.
References in periodicals archive ?
What is more challenging, as Testing the Water illustrates, is that there is much more that needs to be done to reduce our carbon footprint.
Motorola has media-center devices on the market and, says Arden, several other vendors are testing the water.
Since the county started testing the water, the problem has come to the forefront that that place is continually contaminated,'' said Paul Jenkin, chairman of the Surfrider Foundation in Ventura.