Two Leadership Stocks at Long term moving average

The 200 Moving Average is also watched by many traders and fund managers who will buy the stock when it reaches the 200 MA. Here are two leadership stocks at 200 dma.

First: The Trading Rule:

Stocks in Long term Bull markets find strong support at 200 Day Moving Average. Reason: Institutional Fund managers love out performing stocks and keep buying them on declines and 200 dma act as great safety net for the stock

Yesterday, I reviewed why buying leadership stocks at long term moving average makes sense.

Here are two leadership stocks [Sustained Leadership for more than 3 years now] at long term moving average – Will Investors buy?

Apollo Hospitals Stock

Source: Chartalert.com

As you can see in the chart above: Apollo Hospital has been in bull market for many years now and every decline to long term moving average has turned out to be great investment opportunity. The stock is once again trading near 200 dma [200 dma = 606]: and it looks like another attractive opportunity to add the stock in portfolio for next few months.

Nestle Stock

Source: Chartalert.com

As you can see in the chart above: Nestle has been in bull market for years now and here also every decline to long term moving average has turned out to be great investment opportunity. The stock is once again trading near 200 dma [200 dma = 4417]: and it looks like another attractive opportunity to add the stock in portfolio for next few months.

Remember, stocks that are at their 200 Day Moving Average can give us extremely good trading opportunities. One can make a sizeable profit just by trading these stocks. This is because the 200 DMA can act as a very strong support

Please do your own due diligence before trading. There is no guarantee that all trading patterns deliver same results.