What does it mean when a stock chart goes above the 200 day moving average band and below the 50?

Question

The 200 and 50 are crossing over. The 50 up and the 200 down.

The stock has had a 70% or so retracement (25%).

Answer 1

1) 200 day moving average is a average of price of a stock over 200 days of prices. It is considered by market traders as a key line of support. If a stock, or a major index like the dow is trading below the 200 day moving average, most people would consider the market in a bear market.

2) 50 day moving average is the same over 50 days. It is considered an area of support or resistance, but not as solid as the 200 day.

3) Retracements refer to the amount a stock pulls back after a move. For example, if a stock goes from 10 to 20. It is a 10 dollar move. Than if it come back to 13, it is a 7 dollar move back, or a 70% retracement. The less retracement indicates that the counter move, i.e. back higher in this example, is likely to be more powerful, because the stock didn't give up much of its gains and the buyers are very supportive of the stock.

Answer 2

The faster moving average (50MA) is usually the signal line. When it crosses above the slower line (200MA), it means that the trend has just turned bullish. Consequently, if the faster line moves below the slower line, the trend has just turned bearish. http://jsforex.blogspot.com