Question

Based on the data in the chart, which of the following is true about this market signal for Nestle (in solid green line)?

A-Nestle is less risky than P&G and more risky than the ACD index

B-Nestle is riskier than P&G and less risky than ACD index

C-Nestle is less risky than all of the peers and the ACD index

D- none of the above

Question Completion Status NestleCDS jeg >> YTD BY Custom 1Y 11 Zoom Track Annotate 104.769 Procter & Gamble Co/The on 7/30/15 20.974 Nestle SA Unilever NV Henkel AG & Co KGaA America Cons Disc IG CDX 1G Generic 25.585 28.050 100 23.612 104.769 84.376 80 84.376 60 40 25 85 20.974 18 Procter & Gamble Co/The on 11/13/15 0.8098 Nestle SA on 11/13/15 Unilever V on 11/13/15 Henkel AG & Co KGaA on 11/13/15 0.98 430.212M 0.6758 382.6299 K0.6758 0.68 9.58 30.212 300M 200M Nov Dec Jan Feb Mar Apr Jul May Jun Aug Sep Oct Nov Nona of the above Cick nd u Mid Spread Net Notional

Answer 1

Answer : B - Nestle is riskier than P&G and less risky than ACD index

Explaination : Both Nestle and ACD Index are paralleling moving in upward trend. Nestle being at lower end in comparison to ACD index seems less riskier. Probably risk is higher if there is a situation of overbought which may result into sudden downward trend movement. It can be only confirmed through RSI and other momentum oscillators.