The Moving Average bounce

There is frequent debate regarding the importance of moving averages within the context of a stock chart. My perspective is that they are always potential support, but this is not a guarantee.

Anyone that studies charts a lot – like I do – can find many examples where a moving average was in fact a good entry spot for a new long position. Sometimes it is a really clean trigger. To illustrate this, I bring you one of the stocks from my brief watch-list this week — the Daily chart of $AZPN:

The 20 Simple Moving Average is used for this timeframe and shows a nice clean bounce off of it today. The MACD has gone flat as well after a minor drift down as price confirmed the Shooting Star on 11/2/2012.

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