Monday, July 31, 2017

What happens to stocks after falling below the 50d MA?

Based on daily $AAPL closing prices from 03/11/92 to 06/13/17 the issue fell below the 50 day moving average 220 times.  The issue continued to rally on the following day 119 times.  The largest following rally occurred on 10/14/99 when the issue closed higher by 14 percent.  The largest following correction occurred on 04/14/05 when the issue closed lower by -9 percent.

Based on daily $AMZN closing prices from 11/11/97 to 07/07/17 the issue fell below the 50 day moving average 168 times.  The issue continued to rally on the following day 83 times.  The largest following rally occurred on 07/25/07 when the issue closed higher by 24 percent.  The largest following correction occurred on 08/31/98 when the issue closed lower by -21 percent.

Read More: What happens the day after falling below the 50d MA...