When the Market Breaks Through the Moving Average Line from Below

question 3

Multiple Choice

When the market breaks through the moving average line from below, a technical analyst would probably suggest that it is a good time to ________.

• A) buy the stock
• B) hold the stock
• C) sell the stock
• D) short the stock

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Definitions:

Desired Rate

Often refers to the target or preferred rate of return on investment or progress in a specific area, such as growth or interest.

Present Value Factor

A numerical figure used to calculate the present value of a future amount of money or stream of cash flows given a specified rate of return.

Capital Expenditure

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment.

Annual Cash Flows

The total amount of money being transferred into and out of a business, especially analyzed on a yearly basis.