50 Day Moving Average Strategy
TRADE ENTRY
1. To enter a 50-day moving average trade, you should wait for a breakout.
2. Whenever the price breaks the 50-day SMA, you should open a trade in the direction of the breakout.
3. In most cases, the price action will continue in the direction of the breakout.
STOP LOSS
1. If the price breaks the 50 SMA upwards, we need to go long, placing a stop below a bottom prior to the breakout. The opposite is true for bearish trades.
2. If the price breaks the 50 SMA downwards, we need to short the stock placing a stop below the bottom prior to the breakout.
PROFIT TARGETS
1. Hold your trades until the price action breaks your 50-day moving average in the direction opposite to your trade.
2. If you are long, you close the trade when the price breaks the 50-day SMA downwards.
3. If you are short, you close the trade when the price breaks the 50-day SMA upwards.
CONCLUSION
1. Stock price above the 50-day moving average is usually considered bullish.
2. Stock price below the 50-day moving average is usually considered bearish.
3. If the price meets the 50 day SMA as support and bounces upwards, consider a long entry.
4. Stock price meets the 50-day SMA as resistance and bounces downwards, consider a short entry.
5. If the price breaks the 50-day SMA downwards, you should switch your opinion to bearish.
6. If the price breaks the 50-day SMA upward, you should switch your opinion to bullish.
50-day
HAR pushes for cup breakoutIn Bolting RS lines screen.
Closing in top of range for last several weeks, near buy point of 145.10.
MF breaking positive, MACD turning positive.
Shallow enough base 11%.
Margins and Sales growth are a bit lacking.
Earnings estimates have been revised down, and are low at 14%.
Harman Intl Industries (HAR)NYSE
04/20/2015 (Market Close)
IBD Stock Checkup for HAR:
99
Copyright 2015 Investor's Business Daily, Inc
About HAR: MANUFACTURES HIGH QUALITY, HIGH FIDELITY LOUDSPEAKERS, CD PLAYERS, AMPLIFIERS, SUBWOOFERS AND MIXING CONSOLES
General Market Fundamental Checklist Technical Checklist View Chart
Rate A Stock:
PERFORMANCE WITHIN GROUP (HAR)
HARMAN INTL INDUSTRIES RANK WITHIN THE CONSUMER PROD-ELECTRONIC GROUP (10 STOCKS)
Composite Rating 99 Rank within Group: 1st
100%
Best in Group
EPS Rating 97 Rank within Group: 2nd
90%
Relative Strength Rating 94 Rank within Group: 2nd
90%
SMR Rating A Rank within Group: 3rd
80%
Acc/Dist. Rating B Rank within Group: 3rd
80%
EPS - Group Leaders
GPRO
Gopro Inc Cl A
HAR
Harman Intl Industries (Added to My Stock Lists 04/20/15)
UEIC
Universal Electronics
SMDM
Singing Machine Co Inc
PLT
Plantronics Inc
Composite Rating 99
GENERAL MARKET AND INDUSTRY GROUP (HAR)
General Market
Uptrend under pressure
Industry Group
Industry Group Rank (1 to 197) 38
FUNDAMENTAL PERFORMANCE (HAR)
Current Earnings
EPS Due Date 04/30/2015
EPS Rating 97
EPS % Chg (Last Qtr) 64%
Last 3 Qtrs Avg EPS Growth 46%
# Qtrs of EPS Acceleration 2
EPS Est % Chg (Current Qtr) 14%
Estimate Revisions
Last Quarter % Earnings Surprise 39.8%
Annual Earnings
3 Yr EPS Growth Rate 28%
Consecutive Yrs of Annual EPS Growth 4
EPS Est % Chg for Current Year 33%
Sales, Margin, ROE
SMR Rating A
Sales % Chg (Last Qtr) 19%
3 Yr Sales Growth Rate 12%
Annual Pre-Tax Margin 7.6%
Annual ROE 17.9%
Debt/Equity Ratio 29%
TECHNICAL PERFORMANCE (HAR)
Price And Volume
Price $142.00
RS Rating 94
% Off 52 Week High -2%
Price vs. 50-Day Moving Average 5%
50-Day Average Volume 709,400
Supply And Demand
Market Capitalization $9.7 B
Accumulation/Distribution Rating B
Up/Down Volume 1.2
% Change In Funds Owning Stock 4%
Qtrs Of Increasing Fund Ownership 1
Bitcoin 50, 100-Day SMA, Keltner Channels Point to Lower PriceBitcoin is in process of moving lower. You can see this pretty clearly and simply by looking at the 50 Day SMA, 100 Day SMA and Keltner Channels.
Essentially this is an action-reaction process. Looking at the March-April time period the Bitcoin price fell below the Keltner Channels (most or all of one candle body) for 17 days.
During May and June the Bitcoin price rose above the Keltner Channels for 20 days.
Bitcoin price now has fallen below Keltner Channels. If similar to past two instances where price rose above or fell below Keltner Channels, then Bitcoin will stay below channels for 17-20 days.
Price fell below on 7-27-14 so price could stay below Keltner Channels until 8-15-14 or so.
At this point, would not worry too much about up and down price swings. In other words, don't get sucked into buying just because of a $50-60 price swing. Wait for move lower to play out.
A correction is due whether it's a Secular Bear or notThe chart shows the Dow Index and its 50-day Moving Average since 1915. I have encased the Secular Bears that occurred in the period in amber boxes and used purple boxes to highlight corrections that have happened when the share price moved sharply above the Moving Average. Perhaps the recent Secular Bear ended in 2008 and we are now in a Secular Bull Market. Even so, history shows that, when the share price moves sharply out of line with the 50-day Moving Average, a significant correction is due. This correction will, no doubt, happen before the end of 2014.
Analysts disagree as to whether we are still in the Secular Bear (i.e., a long-term bear market) that commenced in 1999/ 2000, or whether we have emerged from the Bear Market into a Secular Bull. My argument is that, whichever view applies, since share prices have risen sharply above the 50-day Moving Average, a severe correction is due before the end of 2014.
The Stock Traders' Almanac predicts that the Dow Jones will fall to $12,000 (from its present c. $16,500) this year. It will then recover to $18,000 by the end of 2015, but fall back to $10,000 by the end of 2018, before the next Secular Bull will start, which will see the markets rising continuously for 15 years.