We’ve probably all heard the phrase “don’t chase stocks,” right?
That’s because strong stocks often pull back to their 50-day moving averages. The 50-day moving average is an indicator most traders use to analyze price trends, and big institutional investors usually defend it in healthy uptrends.
Usually, but not always.
And since it’s smart to stay ahead of these things, we want to show you why it’s important to purchase a stock as close to support or its 50-day moving average as possible.