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BHARAT ELECTRONICS LTD – 21 DAY MOVING AVERAGE

1.  Moving Average is a technical indicator.

2.  It basically avoids the daily price fluctuations and gives a smooth reading of the prices.

3.  I have taken the 21 day Moving Average because it represents a months time. 

4.  Basically the thumb rule is when the price quotes above the Moving Average in the trending zone it is bullish and vise verse.

5.  As regards the non trending areas it is not advisable to use the Moving Average to predict the price.

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