Moving average is a commonly used technical indicator to smoothen out the price fluctuations to identify ongoing trends, and pinpoint support on Charts. The moving average is calculated by averaging the stock prices for a specific number of days.
If it is 200 DMA, then the last 200 days’ average prices are used, if it is 50 DMA, then the last 50 days’ average price is used. Updating the data based on a first-in-first-out ( FIFO) basis.
Moving averages act as major support and major resistance for a Stock. For a Stock that is in a trend and declines to the moving average level, the moving average can act as support for that stock, and if a stock is in a downtrend and goes up to touch the moving average, it can act as resistance.
Here is the list of stocks that recovered after going below its 200 DMA Support:
JUBILANT FOODS
Established in 1995 and headquartered in Noida, Uttar Pradesh, Jubilant FoodWorks Limited (JFL) is India’s largest food service company, operating globally recognized brands like Domino’s Pizza, Dunkin’ Donuts, and Popeyes.
FEDERAL BANK
Federal Bank Limited is a leading private sector bank in India, headquartered in Aluva, Kerala. Established in 1931, the bank has grown into a significant player in India’s banking and financial services sector, offering a range of products including retail banking, corporate banking, wealth management, and digital banking solutions.
PERSISTENT SYSTEM
Persistent Systems Limited is an Indian multinational technology services company specializing in software development, cloud computing, AI, and digital transformation solutions.
Written By Abhishek Das
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