Avalon Rare Metals Breaking Below 200-Day Moving Average on the Daily Chart

The moving averages track the previous price action in a stock. In this case, the 200-day moving average compiles the average share price of the last 200 trading days. Perspective: Price above the average is perceived as positive while price below the average is negative. Currently, Avalon Rare Metals has broken below this level as a support line. Traders will look to see if an increase in volume confirms the break, which could send shares lower.