We've now reached the 200-day EMA, and there's also a fair amount of trading volume here. So there's hope that the price will stabilize here.
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@jkb92 Well, we're still a long way from the 200-day moving average. That's around €4.50.
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@jkb92 Okay. But by default, when people say "200EMA," they're referring to the daily chart. But thanks for clarifying that it's the weekly chart.
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@Floiam Exactly, but the longer-term average is the 200-week moving average. If you look at stocks on a long-term chart, the vast majority eventually return to their 200-week moving average—or at least come close to it. Charly Munger once said the following about this: If all you ever did was buy high-quality stocks at the 200-week moving average, you would beat the S&P 500 by a wide margin over time.
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@jkb92 As a staunch opponent of technical analysis, Charlie Munger has certainly never given the 200-week moving average a second thought. But let's just leave it at that. Have a nice evening!
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•@Floiam So come on, if you don't believe me, just Google it yourself. Besides, buying at the 200-week moving average has nothing to do with technical analysis. It just tells you that you can buy the stock right now at the average price over the last four years—in other words, a reasonably fair or attractive price.
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