Could someone tell me what the 50 day & 200 day price for a stock means. thanks?

Question

Could someone tell me what the 50 day & 200 day price for a stock means. thanks?

Answer 1

It is the average price over the last 50 days or 200 days.

Those that do technical analysis like to look at those numbers to get an impression if a stock is trading well above the average price and average gains or losses (the slope).

Many stock charts will allow you to add the moving averages to the price charts.

Such as:

http://finance.yahoo.com/echarts?s=GE#ch...

If that link will work for you. If you select "technical indicators" then "SMA" for Simple Moving Average it lets you put in up to three lengths of time for which it will average the price.

The 50 and 200 are the most common used, not sure why.

Basically (very) if it is trading under it is thought to be undervalued. If it is over, it is considered overpriced. But as we know, you must also decide the "why" it is trading above or below and the overall market changes that.

And some consider that a stock is not really making a "move" until it breaks above or below a moving average they use.  

Good Luck

Answer 2

I believe you mean 50 day & 200 day moving averages. These averages are placed on a price chart to show how the current price is behaving relative to recent prices. Technical analysis is the subject of studying price charts and indicators in order to gain information about future price.

Answer 3

That's the average price for that particular stock. For more information you can check out http://www.marketstock.net