First Retracement to Rising 40 Week MA
Note: The historical stock examples given below are for EDUCATIONAL USE ONLY. They ARE NOT to be used to make buy/sell decisions in today's market. For more information, please read the HSR Terms of Use.
Description
After crossing above the 40 Week Moving Average (MA) and trending higher, price corrects to its rising 40 Week MA for the first time.
Behavior Note: A cross back above the 40 Week MA is considered to be a bullish sign, however, before declaring a trend change, many like to see confirmation from 3 technical signals:
- Break of trendline
- Moving average crossover
- Break of support/resistance
What you need to know
Given the backdrop of general market uptrend, the first retracement to a rising 40 Week MA is typically an area of support for a stock.
Historical Stock Chart Examples 1A & 1B: Acme Packet (APKT) 2009
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Click to enlarge 1A
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Click to enlarge 1B
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Please >>CLICK HERE<< to go to the next price behavior within Base Behaviors.
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