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The graph below shows a stock price rising faster than its moving average in the first 25 days, approximately, then as shown by the arrow,
The graph below shows a stock price rising faster than its moving average in the first 25 days, approximately, then as shown by the arrow, the actual price breaks through the moving average. As it relates to technical analysis to support a buy/hold/sell decision for an equity position, which of the following statements is most reasonable at the point in time represented by the arrow? SMA (50) IN Notice how the trend reverses once the price breaks below the important moving average (shown by arrow) Chart by Meta Stock Copyright 2006 Investopedia.com 100 05 90 $5 80 Select one: a The actual price breaking though the moving average is a hold signal b. The moving average is lower than the actual price and this is a hold signal C. The moving average is higher than the actual price and this is a buy signal d. The actual price breaking through the moving average is a buy signal e. The actual price breaking through the moving average is a sell signal F
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