Technical Analysis: 90% of Stocks Trading Above 200-Day Moving Average

Technical Analysis

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Question

Technical analysts would consider the fact that 90% of stocks are trading above their 200-day moving average as

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Explanation

Technical analysts may compute the moving average of a stock market series in order to determine its general trend. The 200-day moving average has been popular. When over 80% of stocks are trading above their 200-day moving average, the market is considered overbought. When less than 20% of stocks are trading above their 200-day moving average, the market is considered oversold.