Hey Gang,
The 50-day Moving Average (MA) is a commonly used price level in the market. As with all moving averages, it gives the average value of the stock over the past period…in our case 50-days. When a stock trades above the 50-day MA, the bulls are recognized to be in control of the stock. When the stock trades below the 50-day MA, the bears are in intermediate term control.
The recent market rally is pushing for a test of the 50-day MA. Generally, some short term resistance is found here, but if the bulls recapture the average, the recent rally may have another 10-15% upside. Keep an eye out for the victor at this level. Can the bulls recapture or will the bears gore the bulls once again…For those of you who know me…you know that I expect the bulls to retake control.
Happy Trades,
Jeff
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