When the 50-day moving average crosses the 200-day moving average from below on good volume
A) This would be a bearish indicator because it signals a change to a negative trend.
B) This would be a bullish indicator because it signals a change to a negative trend.
C) This would be a bullish indicator because it signals a change to a positive trend.
D) This would be a bearish indicator because it signals a change to a positive trend.
E) None of the above.

Question

Quizplus · Accepted Answer

When the 50-day moving average crosses the 200-day moving average from below on good volume, it is known as a "Golden Cross." This is a bullish indicator as it signals a change to a positive trend. It suggests that the stock's price is likely to continue rising. Therefore, Choice C is the correct answer.

When the 50-Day Moving Average Crosses the 200-Day Moving Average