Join Dstockmarket's Community - Daily Market Analysis, Individual Stock Analysis.

Join Dstockmarket Telegram Group

Join Dstockmarket Facebook Page

Chart Lesson From AAL - 200 MA Resistance

In this lesson, we examine how the 200 MA acted as a resistance that kept AAL's stock from rising.

If you did not know, the 200 day moving average can act as a powerful resistance that can hinder a stock from going up. Whenever you see a stock approaching its 200 MA from below, you should take note.

The chart above shows the power of the 200 MA.

The yellow line is the 200 MA. Notice how for 2 times the stock was not able to rise further after encountering the 200 MA.

A declining 200 MA also shows us that the stock is not healthy in the long term.

The second time AAL hit the 200 MA, it also formed a double top and broke below a downtrend line. Hence the decline.

Hope you learned something from this lesson.

For more chart lessons, come back often to visit this site as I often do chart lessons.

  • Help support this page and press the Facebook Like button below. Thanks!

Join Dstockmarket's Facebook Page 

Recent Articles

  1. Technical Analysis Of the US Stock Market July 2020

    Jul 13, 20 07:44 AM

    Here is a technical outlook for the US stock market.

    Read More

  2. Technical Analysis Of The KLCI July 2020

    Jul 13, 20 07:44 AM

    Here is a technical outlook for the KLCI.

    Read More

  3. KLCI Analysis June 2020

    Jun 29, 20 08:04 AM

    Technical analysis of the KLCI for the month of June 2020. What is likely to happen? Read here.

    Read More

  4. US Stock Market Analysis For The Month Of June 2020

    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?

    Read More

  5. US Stock Market Analysis April 2020 - The Coronavirus Impact

    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.

    Read More

New! Comments

Have your say about what you just read! Leave me a comment in the box below.