Series 3 — National Commodity Futures Exam — All Questions
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2 questions
Fundamental & Technical Analysis
An analyst who forecasts commodity prices by studying crop weather, inventory reports, and industrial demand is primarily using:
- a.Technical analysis
- b.Fundamental analysis✓
- c.Chart pattern analysis
- d.Moving-average analysis
Fundamental analysis studies the real supply-and-demand forces behind a commodity, such as weather, stocks, and usage, to judge whether prices are too high or too low. Technical methods instead study price charts.
Fundamental & Technical Analysis
Which tool is characteristic of technical analysis rather than fundamental analysis?
- a.USDA crop production reports
- b.Interest-rate forecasts
- c.Industrial consumption data
- d.Support and resistance levels on a price chart✓
Support and resistance levels are drawn from past price behavior and are hallmarks of technical analysis. Crop reports, rate forecasts, and consumption data are fundamental inputs that describe supply and demand.