These averages are crucial support points as failure to hold will pull prices back to its long-term moving average
(200-day moving average) which is currently at 7,020, Limlingan said.
It's also important, when using value and momentum theory, to: (1) exit or hedge stocks when they are in the top 20% overvalued territory, and (2) exit or hedge stocks when they are below the long-term moving average
on the S&P 500.
Analysts who study charts of past price movements said gold had now found support from a long-term moving average
When a short-term moving average exceeds (falls below) the long-term moving average, a buy (sell) signal is considered to be generated.
However, when VMA rule is introduced with a one percent band, a buy (sell) signal is initiated only when the short-term moving average exceeds (falls below) the long-term moving average by at least one percent.
The proposition introduced is that no local job market can sustain job growth above a long-term moving average
. The longer that annual job growth is greater than the long-term moving average
, the more likely it is that a period of job decline will occur.
'Meralco shares have been trading above both its short- and long-term moving averages
for a month now.
We are below short- and long-term moving averages
However, the major trend is up as the markets are currently trading above their short-term, medium-term and long-term moving averages
. Any dip is an opportunity to buy," said Haddad.
However, he noted, the longer-term trend of the currency remains bearish as the prices remain under declining long-term moving averages
We advise to stay light on positions or accumulate issues which are still holding above long-term moving averages
, he said.
A cautious position is still raised this week, especially since some issues have already recovered above their long-term moving averages
. On the other hand, we recommend taking profits on trading positions or sell those which are now trading near resistance, he said.