Moving Average of Stock Prices: Indication and Analysis

Moving Average and Current Price: Implications

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If the moving average of past stock prices has been above the current price, this indicates

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A. B. C. D.

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A 50-day moving average, for example, would be equal to the average stock price for the past 50 days. In order for this average to be consistently above the current price, the current price must be going through a general decline that is dragging it below the moving average, which takes longer to adjust to falling prices.