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On a relative-strength index oscillator (0-100), a sustained reading above 70 is typically interpreted as:
AOversold conditions calling for buying
BOverbought conditions calling for caution
CA neutral mid-range signal
DA breakdown of trend confirmation
Answer & Solution
Correct answer: B. Overbought conditions calling for caution
1. Identify what the question asks: this concept maps to rsi (§2.6).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (B).
_Source: ICAI BoS CA Final Paper 2, Ch 4 "Security Analysis"_
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