100-Day & 200-Day Moving Average Support
The 100-day and 200-day simple moving averages (SMAs) are widely watched levels. In healthy uptrends, blue-chip stocks often pull back to one of them and resume the trend — making the SMA a useful staging zone.
Why these averages matter
Large institutions use these averages as reference levels for risk management. When a quality company touches the 200-day SMA with otherwise intact fundamentals, it often attracts mechanical buying.
How the agent uses them
- Above 200-day SMA: uptrend intact — pullbacks are buyable
- Touching 200-day SMA: classic staging zone
- Below 200-day SMA with weak fundamentals: avoid; thesis at risk
- Below 200-day SMA with strong fundamentals: monitor, do not add aggressively
Combining with other signals
MA support is worth 15 of the agent's 100 points. The best entries occur when MA support, oversold RSI, lower Bollinger Band, and fundamental strength align simultaneously.
Broken support is a sell signal
If price breaks below the 200-day SMA on weakening fundamentals, the Sell Timing Agent flags it for trim or sell. See the sell timing agent page.
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Research and educational tool. Not investment advice. See our disclaimer.