Simple Or Exponential? — Look At APOL
The 200-day SMA (simple
moving average) is one of the most widely followed indicators by many investors
and traders. One book describes bears live below the 200-day SMA, and
bulls dwell above it. Indeed, this SMA is the simplest way to determine the
long-term trend of the stocks. Â
10:17:50
(From TradingMarkets TradersWire)
Apollo Group (APOL)
is testing yesterday’s low and the 200-day SMA. APOL is down 28 cents at 81.79.
Look at the daily chart of APOL as of yesterday’s
close. It failed to take out the 61.8% Fib level and finished just above the
200-day SMA.
Now let’s see the 3-minute chart from today’s session. The stock tested the
200-day SMA twice, but it finally broke down shortly after 10:30 A.M..
I want you to look at one more chart. Do you see it? APOL is now testing the
200-day EMA (exponential moving average). Definitely, some traders are closely
watching the 200-day EMA.
If you have questions, feel free to mail them to me.