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.
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.
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