NISM Certifications · NISM-Series-XV: Research Analyst · Technical Analysis
A stock's closing prices over the last five days are Rs 100, Rs 104, Rs 108, Rs 112 and Rs 116. What is its 5-day simple moving average, and is the latest close above or below it?
The 5-day simple moving average is Rs 108, found by adding the five closes to get 540 and dividing by five. The latest close of Rs 116 is above this average, which indicates upward price momentum in the short term.
- ARs 108; latest close is above itCorrect
- BRs 110; latest close is above it
- CRs 108; latest close is below it
- DRs 116; latest close equals it
Explanation
Sum = 100+104+108+112+116 = 540. Divided by 5 = Rs 108. Latest close Rs 116 is above Rs 108. Rs 110 would wrongly use an incorrect sum, and Rs 116 simply takes the last price.
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