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Byline: Jonah Keri
Stock after stock has tried to break out lately, only to quickly wipe out its gains and fall below its pivot point. Rather than implode, though, many stocks have found support at their 50-day moving averages.
In a healthy market you can use the 50-day as a secondary buy point for a leading stock. You don't want to be so cavalier in a bad market, but support at the 50-day at least shows that institutions are stepping in to buy shares at a key level, a good sign.
Dean Foods cleared an upward-wedging handle at the end of a V-shaped base on Sept. 5. The stock rose just above 40, then formed another base. It made another move toward ...