The 200 Day Moving Average

Of the many indicators watched by market technical analyst one of the most important is the 200 moving average. On a daily chart the 200 moving average(MA) is a long term indicator: if price is above the 200 MA the long term trend is up, if not it is down. A 5 year daily chart below shows that for the most part price has been above the 200 MA (blue line) until the second half of 2007. However, now, price is again up against the 200 MA. The question remains which side of this blue line price will stay on in the future. Click on chart to enlarge.