Heyer Capital, LLC

investment management and timely advice from a local CPA (Fox Valley, Wisc.)

revisiting the 21 day average

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I encourage you to set your chart preferences to show the 21 day moving average (or 20 day average on Yahoo!). It’s uncanny how often I see stocks that find support at the 21 day average.

I wouldn’t say use a 21-day touch as an entry point into a stock, but more as a reference to the health of the stock. If you own it, and it falls to and holds the 21 day, be comforted. If it drops lower than the 21 day, look for where the 50 day is.

If I had to characterize these stocks, let me suggest that they are the ‘hip’ stocks of the market. In other words, there’s a fair amount of ‘momentum’ money behind them.

Here’s two examples. These happen to be big-cap stocks, which the market seems to be favoring now.

CVX GS 21 Day


Written by heyercapital

May 29, 2007 at 9:13 am

Posted in charting, stock ideas

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