200-day moving average

200-day moving average

A technical indicator compiled as a statistical series of a security's closing prices throughout 200 consecutive trading days. A 200-day moving average is designed to discover changes in a trend. Generally, a moving average is superimposed on a stock's line chart. If the stock price penetrates the moving average on the upside after a downward trend, the penetration is a signal to buy. But if the stock price penetrates the moving average on the downside following an upward trend, the penetration is a bearish sign.
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I wrote about this earlier in the year, but thought a quick review would be in order since so many people are talking about the 200-day moving average on TV and in the newspapers.
The company is trading above its 200-day moving average of $41.
In fact, the 200-day moving average on the NASDAQ is already beginning to turn slightly negative.
In fact, he noted recently that continued chopping around near the 200-day moving average would be very bearish, and that's what is happening.
But unless the break through the 200-day moving average is an intermediate rollover - which Bugos doesn't believe it is because the last lowest high in the intermediate sequence occurred in early October and has not been violated yet - the correction has probably run its course, whether the broad market makes new highs or whether it slides sharply from here.
The number of NYSE stocks above their 200-day moving average lines has stalled around 37%.
All of the major stock market indexes continue to trade comfortably above their 200-day moving averages, with 78% of NYSE stocks currently above their 200-day moving averages.