Stocks Near 50day Moving Average: S, MCD, IBM, BA, SCHW

Published on Tuesday, 07 February 2012 21:50 Written by Christian Paolinetti

New York, February 7^th (TradersHuddle.com) – The market for Sprint Nextel (NYSE: S), McDonald’s (NSYE: MCD), IBM (NYSE: IBM), Boeing (NYSE: BA), and Charles Schwab (NYSE: SCHW) ended the day near their 50Day Moving Average and trading above this closely watched medium term trend indicator. 

The moving average was computed using an algorithm that performs an average of a certain number of time periods, in this case 50 days, that evolves over time. Calculating this type of moving average helps traders smooth out the price action so they can develop a better sense for the stock price’s medium term trend direction.

Traders observing a stock priced just above its 50 Day Moving Average might establish a long position or cover shorts thinking that the market has either just broken above it, or is in a temporary short term downward correction within an overall upward trend. In an ideal bullish situation, buying pressure will emerge ahead of the 50 Day Moving Average and the moving average will be rising.

News Related to Top Three Stocks Near 50 Day - Stocks Trading Above

The price of Sprint Nextel (NYSE: S) closed the day at $2.45 near and above its 50 Day Moving Average. Some recent news items related to this stock are:

Sprint closed lower in the day ahead of its earnings report schedule for tomorrow before the opening bell. On average analysts expect a loss of $0.37 per share on revenues of $8.68 billion. Sprint has been under heavy pressure on concern over margin compression amid its deal to sell the iPhone on its network and increased investment as the company build its upgraded network.

In addition, the price of McDonald’s (NYSE: MCD) ended the day’s session at $100.91, just higher than its 50 Day Moving Average. The latest news stories about this stock include:

The stock saw upside momentum after Yum Brands! posted better than expected earnings on higher revenues that consensus amid a surge in sales in China.

IBM’s share price also finished trading near and above its 50 Day Moving Average. Fresh news reports pertaining to this stock follow:

Sterne Agee initiated new coverage on the tech giant with a Buy rating. IBM has climbed more than 5% year to date, with price action placing the stock near its all-time high of $194.90.

Additional Stocks Near 50 Day - Stocks Trading Above

Other stocks whose prices closed the day higher than and in the vicinity of their 50 Day Moving Average were Boeing (NYSE: BA) and Charles Schwab (NYSE: SCHW)

Visit the Technical Scans section of this website for a full listing of stocks that closed trading just above their 50 Day Moving Average.