Inside this article you find companies with a potential buy signal according to one of the most used tools, simple moving average. In particular, the Moving Average Breakout Chart Patterns.
Simple Moving Averages BREAKOUT
The simple moving average of an instrument is given by the average of the closing prices of a number of past trading sessions. A potential buy signal is generated when the price of a financial instrument rises above a simple moving average calculated over a period of key days, indicating the potential start or continuation of a positive trend.
How do I know if it’s a false breakout?
The breakout is defined as “false” when the positive trend that supported the price growth reverses the direction (going from positive to negative). To understand when this event occurs, there is a red half-line in the chart that indicates the level below which the positive trend can be considered concluded.
A few negative days are not enough to call it a “false” breakout because often the cause is natural temporary volatility (given by the retest of the signal level or profit taking or general market crash).
This analysis is for informational purposes only and does not constitute investment advice.
Simple Moving Average 20-day (blue line)
Bill.com Holdings Inc (BILL)
Peloton Interactive Inc (PTON)
MSCI Inc (MSCI)
Simple Moving Average 50-day (red line) & 200-day (black line)
Guidewire Software Inc (GWRE)
Fiserv Inc (FISV)
Iaa Inc (IAA)
American Homes 4 Rent (AMH)
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*Charts by tradingview.com
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