When a stock price breaks through the moving average from below, this is considered to be ________.
A) the starting point for a new moving average
B) a bearish signal
C) a bullish signal
D) none of these options

Question

Quizplus · Accepted Answer

When a stock price breaks through the moving average from below, it is considered a bullish signal. This is because the stock price has crossed a key technical level, indicating that there may be further upward momentum. A bearish signal would be when the stock price breaks through the moving average from above, indicating the possibility of further downward movement. The starting point for a new moving average is not related to whether the stock price breaks through from below or above the moving average.

When a Stock Price Breaks Through the Moving Average from Below