Join Dstockmarket's Community - Daily Market Analysis, Individual Stock Analysis.
The 50 day moving average is watched by many traders and investors. Therefore it is considered to be a major moving average. In the previous article, we have discuss about how to use the moving average to analyze stocks. If you haven't gone through it, I recommend you read it. In this article we are going to look at another use of the 50 day moving average.
One of the uses of the 50 MA is its ability to act as a psychological support. It can also be used to point us to real price support. Since the 50 MA is observed by many traders, it is so powerful that on its own it can be support as well.
The 50 MA support does not work all the time but if you combine it with other analysis such as support analysis and indicators such as stochastics, you can have a very high accuracy candidate for a reversal.
The 50 MA can also act as a resistance. If a stock is below its 50 MA and it rises to touch the 50 MA, odds are it may find it difficult rise further.
The 50 MA can be a very reliable support or resistance. Therefore, many traders create trading strategies based on the 50 MA. I also love to trade stocks that are touching their 50 MA.
Jul 07, 20 09:25 AM
Here is a technical outlook for the KLCI.
Jul 07, 20 09:24 AM
Here is a technical outlook for the US stock market.
Jun 29, 20 08:04 AM
Technical analysis of the KLCI for the month of June 2020. What is likely to happen? Read here.
Jun 29, 20 08:03 AM
Well, sell in May did not materialize for the S&P 500 but the market continues to chugg higher. What is in store for us this month?
Apr 30, 20 07:49 AM
What is the stock market likely to do from this impact of the Coronavirus? Will it continue to fall or a bottom is near. We will use charts to guide us.