Which of the following is true regarding the resistance level?

Section A (1 Mark)

Which of the following is true regarding the resistance level?
A . Resistance levels tend to develop due to profit taking.
B . It is the level at which a significant decrease in demand is expected.
C . It is the level at which a significant increase in supply is expected.
D . Resistance levels usually develop after a stock reaches a new low.

Answer: C