If you've ever thought about writing a book on technical analysis, you might want to use this chart as a textbook example of how to buy with the 200-day moving average.
Note how Vail Resorts (MTN) in the chart above dips to the rising 200-day moving average in March, and again in late September. Also, note the pickup in volume as prices touch and rebound. These were great buying opportunities. The chart also shows a bullish Moving Average Convergence Divergence (MACD) signal, but the On-Balance-Volume (OBV) is diverging a bit.
The longer-term chart above shows MTN trading higher above the rising 40-week moving average for well over a year. The OBV line is fine and confirms the new highs in this time frame. The MACD oscillator is generating another positive crossover. It looks like MTN can maintain its winning ways and a $150 point and figure price objective is not out of the question.
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The pace of the advance in the steakhouse operator's shares has been slowing and volume is shrinking, too, so be cautious.
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