The Moving Average Fake-Out uses three moving averages to confirm established trends and provides a reliable way to join the path of least resistance.
Learn: Moving Average Fake-Out
These three stocks have risen steadily in their weekly charts. The color of the moving averages in the charts below changes according to their slope. The look-back periods are 14, 30, and 50.
1. Moving Average Fake-Out On BAC Weekly
- The three moving averages have positive slope and have shown a nice bull trend.
- The most recent pullback in the trend is in its second leg down. The bullish reversal bar at the 14-period moving average offers a long setup.
- Using the last major swing high as a target provides a good reward:risk ratio.
2. Moving Average Fake-Out On CMCSA Weekly
- The fast moving average provided good support to price. It is a sign of a strong bullish trend.
- The later pullbacks were deeper but the bulls were undeterred.
- The two aggressive bear bars pushed prices down to the 14-period moving average. Is it another a fake-out?
As this setup is on the weekly chart, it is more reliable than the earlier moving average fake-out we pointed out on the CMCSA daily chart.
3. Moving Average Fake-Out On STI Weekly
- Despite some sideways action, the moving averages have held up as support.
- As price broke above the resistance and continued upwards, the trend gained momentum.
- The bottom tails of the recent bars at the 14-period moving average are signs of buying.
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